Hi
I'm looking for some advice for a friend (genuinely!) regarding his mortgage. The following is what I know..
Bought house sometime in 2003/4 (Northern Rock no deposit mortgage) @ 70k
Remortgaged at some point, current mortgage outstanding around 88k, house valued around the same.
For certain reasons he is not living there, he is looking to live there long term but not in the next few years.
The House is currently on informal rental agreement (his friend lives there, and the rent doesn't cover the mortgage).
He has recently read something that has worried him to do with it being mortgage fraud to be doing this - is this right?
He is worried about insurances being invalid and the main thing - what will happen when he comes to remortgage? (I think he needs consent to let?)
I think his LTV will mean he won't be able to get another mortgage as they don't do 100% ones, so he will be forced to remain on the variable rate, is this right? And getting a buy to let mortgage would be even more difficult?
I think his only option is to sell the house, but is there another (legal) way around it? Would it be better getting a longer/shorter term mortgage when it's due - ie would either of these help if he is happy to do them?
I think the question is, is there a feasible way to convert this to a legitimate arrangement so he doesn't worry about it?
Thanks for any help in advance :)
Blue
I'm looking for some advice for a friend (genuinely!) regarding his mortgage. The following is what I know..
Bought house sometime in 2003/4 (Northern Rock no deposit mortgage) @ 70k
Remortgaged at some point, current mortgage outstanding around 88k, house valued around the same.
For certain reasons he is not living there, he is looking to live there long term but not in the next few years.
The House is currently on informal rental agreement (his friend lives there, and the rent doesn't cover the mortgage).
He has recently read something that has worried him to do with it being mortgage fraud to be doing this - is this right?
He is worried about insurances being invalid and the main thing - what will happen when he comes to remortgage? (I think he needs consent to let?)
I think his LTV will mean he won't be able to get another mortgage as they don't do 100% ones, so he will be forced to remain on the variable rate, is this right? And getting a buy to let mortgage would be even more difficult?
I think his only option is to sell the house, but is there another (legal) way around it? Would it be better getting a longer/shorter term mortgage when it's due - ie would either of these help if he is happy to do them?
I think the question is, is there a feasible way to convert this to a legitimate arrangement so he doesn't worry about it?
Thanks for any help in advance :)
Blue