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Legal matters

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mortgages and legalities

1 reply

housethatjackbuilt · 13/01/2010 16:41

if someone had a couple of flats, one of which was on a BTL mortgage and wanted to knock them together to make a family home without telling his bank, but continued to make payments and such like, never defaulted. What's the worse that they could or would be likely to do if they found out afterwards? Would they simply help him to combine the mortgage into one loan to make it easy, or would they threaten all kinds of horrible action?

OP posts:
LIZS · 13/01/2010 16:46

It would be in breach of the terms and conditions of the mortgages. The value of one property may nto be the same as 2 separately so the loan to value ratio could change too. At worst I suppose they could call in the debt and sue for any loss of interest income or early redemption penalties. Not sure why he wouldn't tell the bank as normally a residential mortgage is on better terms than a BTL. Might also affect insurance.

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