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very boring technical mortgage question

(10 Posts)
Sultanselephant Mon 10-Feb-14 11:51:42

This has been keeping me awake at night and I'd really appreciate advice from any mortgage experts out there!

We're living in a rented house at the moment and have rented out our own house in our old area. When we moved out 6 months ago, we didn't tell the mortgage company as the would have wanted us to change the mortgage terms to buy to let and we were worried it would cost us more. Now we're selling our house and want to buy a new one near where we're living now. We've changed all our details (electoral register etc) to the new address except for the ones relating to the bank account that links to the mortgage.

My question is this: given the discrepancy between address on the electoral register and the address on the mortgage, will we have a black mark against us when we apply for a new mortgage? Plan is to redeem the old mortgage, put the spare £ in the bank and buy a house with a new mortgage once we're in a strong buying position (as the market where we are is mental). But I'm really worried that by being dishonest with our mortgage company, we might have a black mark against our credit record. Should we fess up, or hope they don't notice? What's the process for approving mortgage applications? We have over 50% equity so are a good bet, but I'm having nightmares about this, stupid I know, and my own fault.
Any ideas?
thanks a lot everyone

schmalex Mon 10-Feb-14 12:08:46

I would have thought the discrepancy would show up on a credit search. You could sign up with Equifax or Experian and check your credit rating (I think Equifax is more commonly used).

I also think you're probably in breach of the mortgage deed you've signed with the bank, as it usually says you have to have their permission or let them know that you're letting out a property. I would fess up and get it sorted beforehand.

schmalex Mon 10-Feb-14 12:14:51

Or if you don't mind committing fraud you could hope they don't notice...

Sultanselephant Mon 10-Feb-14 12:21:22

thank you - no need to be harsh, I'm aware it was a mistake, and actually our estate agents said that very few people inform their mortgage companies when they move out, particularly for such a short period.

HaveToWearHeels Mon 10-Feb-14 12:23:11

Sultan I had a flat many years ago (early 90's) and moved in with my then partner, I never informed the mortgage company. I sold the property 5 years later and nothing was ever a problem.

Sultanselephant Mon 10-Feb-14 12:24:38

thankyou !

SolomanDaisy Mon 10-Feb-14 12:28:36

You could just apply for permission to let now. If you have 50% equity they're almost certain to give permission and they won't ask you to change to buy to let. The estate agent gave you some pretty bad advice, not informing the mortgage company has probably invalidated your insurance.

InsertUsernameHere Mon 10-Feb-14 13:20:25

I'd fess up and get it sorted. They might not put it on a buy to let mortgage as you aren't doing it long term. We rented out our flat for 6months and the bank were fine with it. If you didn't need another mortgage and were just going to sell it (like havetowearheels) it is unlikely to cause problems. But in your case as you will be looking for a new mortgage you need it all straightened out.

ScarlettMantleplume Mon 10-Feb-14 13:30:18

I was a mortgage underwriter, but am now a SAHM, so admit that my knowledge is a few years out of date. Speaking from experience we would have rolled our eyes but not really given a toss. We were only interested in your ability to pay the mortgage, and the suitability of the property for a straightforward resale in case you didn't.

Sultanselephant Mon 10-Feb-14 14:21:49

thank you everyone x

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