I need a mortgage holiday while selling my buy to let

P

Portobello

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Hi,
I am an accidental landlord since middle of 2013. Bought in 2004. Always paid mortgage up to date, have overpaid by 120 a month last 5 years also.

Renting to same couple since then, moved in with girlfriend and am now selling up. It's not sustainable.

Property worth 350-380K, owe 250K.
Have landlord insurance.
Tenants have given me notice also, so will have to start paying full mortgage off my own back end March.

I need to get a mortgage holiday as not sustainable while trying to sell. If get 3 months, then use savings for months 4-6 (assume six months to sell)

Bank told me today they'd be looking for six months statement. The form also asks me to note rental incoming (for buy to let section)

Problem is that bank statement shows my own address, and transactions showing rent coming in (property address) also items like "rent tax". I reckon difference between regular rate (4.5) and btl (4.8) would be around 50 euro a month.

I suppose I thought I could get away with it, but the problem is because I need a mortgage holiday to manage when no rent while selling.

Am inclined to come clean, thinking worst is that I pay back-interest, or best that they switch me to buy to let from now on.

If I don't fill in the form truthfully, they could come after me?

I'm wondering has anyone had similar experience / advice?
 
inchicore said:
have overpaid by 120 a month last 5 years also.
Click to expand...

If so, you have overpaid by €7,200

What are your monthly repayment? €1,300 or thereabouts. So you should have around 6 months in overpayments. The lender might not see it like this, but make sure to point it out. Rather than ask for a full mortgage holiday, would you not ask for something like interest only? It might be easier to get.

Brendan
 
Hi Brendan

30 year mortgage with 18 to go
Age 47
BOI Standard Variable
Repayments 1650 per month plus 120 overpay which I just stopped
I overpaid so as to reduce the mortgage term.

Approx figures.....
Rental income 17400
Expenses 11000 (9k mort interest, 2500 mgmt fee, 500 other)
Net rental. 6800
Tax. 3000

Mortgage. 19800
Expenses. 3000
Total Exp. 22800

Gross Rent. 17400
Tax. 3000
Gross after tax. 14400

Net cost pa. 8800 which is say 750 per month to fund

Reason accidental landlord is was owner occupier until met and moved in with partner

Broadly speaking can sustain funding but note net mortgage is 50% take home so period without rent difficult(hasn't happened yet). So am paying down approx 10k off capital.

Projecting ahead, even after increasing rent by say 150pm every two years, mortgage interest relief lowers so next cost really stays as 700 per month.

Options to reduce include securing lower rate due to better LTV or say going interest only for period (hence question)

Salaries 80k me plus 30k partner
My monthly take home = 3200
I put over 1500 pm into company DC pension (started age 37, AVC 20%)
Savings 30k me plus 70k partner
Partner tracker 1.85%, balance 190, valuation 290
Can port tracker plus 1%

Apt sale consideration due to us thinking of following options
1.Extension 150k
2. Sell both, pocket 100k then buy new say 500k
3. Sell both, pocket 100k ,then buy cheaper rental 200k borrow 100k, charge say 1400 pm so should be relatively self sustaining, even after paying tax
Above also assume 150 pocke from apt sale

At end of day it is a personal decision driven by where want to live, and level of financial security want as older. We would like some form of income and perhaps option 3 may be good.

Having said that I was wondering if anyone had opinion on how sustainable it would be to keep apt?
Am I mad to keep it going or would there be any other suggestions?

Many thanks
 
You'd be mad to risk anything with the bank just to get a payment holiday. I actually don't see what the issue is, you have 30K and that's 18 months of repayments?

I see the rent doesn't even cover the mortgage repayments.

No idea what you are at with the new three options you have posted. Perhaps if you gave details of your current living arrangments and who pays what for rent/mortgage it might make more sense.
 
I am also an accidental landlord. ( I Have tracker with UB) I intend selling the property I contacted the bank mortgage advisor and said that I was not living in the house and what would be the best course of action to take was told that the best thing to do is to move back into the house to sell it and have 6 months bank statements clear of any rental income or outgoings. He said its just alot less hassle as the bank will not like to see any rental in and outs I gave my tenants 5 months notice and will move myself and family back into the house to sell it
 
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