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Breech of contract for buy to let

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Author Topic: Breech of contract for buy to let  (Read 335 times)
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« on: March 17, 2021, 09:27:50 AM »

I recently re-mortgaged a property in Nov-20 from a residential to a buy to let ( 5 year fixed ), as I was living with my partner, unfortunately In Dec-20 the relationship ended, so I got in touch with my lender to ask if I could exchange the current mortgage to a residential mortgage, I was told I would have to go through the re-mortgage process all over again, and if I moved into the property I would be in breech of contract. I contacted them again to find out what this would mean for me, and they have stated I would not have any flexibility on my current mortgage and they would not offer me one at the end of the term, I also got this in writing.
So I contacted my mortgage broker for some quotes for a residential mortgages ( as want to do this correctly ), which they provided, but the lenders for the residential mortgage have said I need to be living in the property and on the electoral role, which would mean in breech of current contract with existing lender ☹. The question I have is if I move into my current property and donít remortgage at the end of the term will I be able to get another mortgage from a different lender or will I be blacklisted. Seems I caught between a crack, not supposed to move in, but need to for remortgage. If I donít remortgage it will save me about £4-5,000 as early penalty charge is high due to only taking out in nov-20

Hopefully someone will know 😊
many thanks

Chris
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« Reply #1 on: March 17, 2021, 06:14:51 PM »

Talk to some other lenders.
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« Reply #2 on: March 17, 2021, 09:27:29 PM »

Beg your ex-partner to let you back in. That's got to be the shortest foray into letting I've heard of... one month? And you got a five year fix? Wow.

Keep letting it out is an option (or start)... you find somewhere really cheap to lick your wounds and think about what you did.
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« Reply #3 on: March 18, 2021, 08:13:19 AM »

Beg your ex-partner to let you back in. That's got to be the shortest foray into letting I've heard of... one month? And you got a five year fix? Wow.

Keep letting it out is an option (or start)... you find somewhere really cheap to lick your wounds and think about what you did.

Hippogriff, I had started the process in June 2020, and like the famous saying is you never know whats around the corner, just want to make sure I am doing everything correctly and no comebacks later down the line
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« Reply #4 on: March 18, 2021, 08:35:22 AM »

You would think... when someone says you need to be living at the property... they'd mean that this is your actual plan... that it'll definitely be your residence... that you'll absolutely move in and live there. For example... if I was a person with no properties to my name... and I wanted to buy a house... and I got a mortgage on it, for the purchase to happen... then no Lender would insist I was already living there, would they? The whole housing market would grind to a standstill. Maybe you are operating in-between a fine-line / grey area where you can, in all good faith, I am [will be] living there and just proceed quickly beyond this administration hurdle? Either that or move in now and accept the breach (britches?) then swap over.

The choice seems quite binary, and also quite simple. You don't accept Catch-22s created by The System, especially if there are no moral consequences... Yossarian didn't and neither should lummy33. What is this fear of being blacklisted? Do you think it's real and likely? I think not. You are clearly not a mortgage fraudster... you hardly know what you are doing. You can't be a true fraudster through ineptness. You do need / should have some skill if you're setting out to de-fraud the financial institutions... asking open-eyed questions on Internet forums is not how you'd generally commence that journey into the underworld.

I would do what needs to be done... ensure all the correct payments are made (after all, that is what the financial institutions really [only] care about at the end of the day) and get yourself back on track. I would still consider begging the ex-partner though... everyone can end up in bad relationships... it doesn't mean being alone is better, or that there's someone better out there. And the problem could be you, of course... you could be a psycho. - we don't know.
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« Reply #5 on: March 18, 2021, 08:52:35 AM »

You would think... when someone says you need to be living at the property... they'd mean that this is your actual plan... that it'll definitely be your residence... that you'll absolutely move in and live there. For example... if I was a person with no properties to my name... and I wanted to buy a house... and I got a mortgage on it, for the purchase to happen... then no Lender would insist I was already living there, would they? The whole housing market would grind to a standstill. Maybe you are operating in-between a fine-line / grey area where you can, in all good faith, I am [will be] living there and just proceed quickly beyond this administration hurdle? Either that or move in now and accept the breach (britches?) then swap over.

The choice seems quite binary, and also quite simple. You don't accept Catch-22s created by The System, especially if there are no moral consequences... Yossarian didn't and neither should lummy33. What is this fear of being blacklisted? Do you think it's real and likely? I think not. You are clearly not a mortgage fraudster... you hardly know what you are doing. You can't be a true fraudster through ineptness. You do need / should have some skill if you're setting out to de-fraud the financial institutions... asking open-eyed questions on Internet forums is not how you'd generally commence that journey into the underworld.

I would do what needs to be done... ensure all the correct payments are made (after all, that is what the financial institutions really [only] care about at the end of the day) and get yourself back on track. I would still consider begging the ex-partner though... everyone can end up in bad relationships... it doesn't mean being alone is better, or that there's someone better out there. And the problem could be you, of course... you could be a psycho. - we don't know.

Thanks Hippogriff really don't want to remortgage again and add to the ever growing mortgage, you have made my day saying I could be a psycho, as you say you just never know  :) :)
« Last Edit: March 18, 2021, 09:59:10 AM by Hippogriff »
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« Reply #6 on: March 18, 2021, 09:59:33 AM »

Mortgages are supposed to shrink, not grow.
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« Reply #7 on: March 18, 2021, 10:25:23 AM »

I would be inclined to take the risk,it's not as if you will go to prison if they find out.Just move quietly back in,don't discuss the mortgage situation with anyone,especially your ex.Possibly your name is still on the electoral role from before? You were a bit of a silly sausage not to see the writing on the wall in your relationship.Hippogriff's suggestion could also be worth consideration.Promise to stop being a pscho/arseshole/lazy slob/womaniser/selfish pig etc,and see what happens. Lovely presents are especially effective.Good luck. 
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