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A lot of people are buying houses on regular mortgages moving out of the property and then renting the property out. You are supposed to inform your bank when
by hackerboos 12y ago
A lot of people are buying houses on regular mortgages moving out of the property and then renting the property out.
You are supposed to inform your bank when you do this - but many do not because banks will increase interest as you are effectively converting to a buy-to-let.
I don't know anyone that has informed their bank and non-enforcement of this rule is allowing people with 5-10% deposits obtain buy-to-let mortgages when normally they would require 25%.
Oh and it's not legal. It's a breach of contract if you do not inform your bank.
- arethuza 12y agoI don't think it's usual to describe breaking a contract as "illegal" - that's generally used for something that breaks laws.
- hackerboos 12y agoI suppose in certain cases it might be classed as fraud.
- foobarian 12y ago> Oh and it's not legal. It's a breach of contract if you do not inform your bank. Not legal as in against the law, or just subject to whatever clauses are there in the contract to cover that particular outcome?