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Residential mortgage but renting the property without consent! Latest Articles

Hello readers,

For the last 3 years I’ve rented my flat on a residential mortgage whilst simultaneously living in a rented house. This is because of a change of a job which meant I had to move. I however couldn’t sell the flat due to negative equity. The flat contains roughly 15% equity and I have some savings.

I’m aware that I shouldn’t have done this, but the alternative was to default on the mortgage.

I want to get this sorted ASAP because it is now giving me sleepless nights. My options are therefore:

1) My current tenant has expressed some interest to buy from me, but lacks savings. I could therefore pay his deposit on a mortgage for him

2) Look for a BTL – this would need to be between a 75% to 80% LTV! ideally 80%, which seem difficult to get because I’m renting myself

3) Bury my head in the sand and hope that my mortgage provider doesn’t find out.

2 is probably the most likely outcome. If I did choose 3, if they did find out, would this make it difficult for me to simply switch to a BTL with someone else, should my mortgage provider call in the mortgage?

Many thanks Darren underthecosh

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