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Ask Clare Your Own Question
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34908
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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I have just found out today that the mortgage I have on my

Customer Question

I have just found out today that the mortgage I have on my rental property is not a buy to let. My husband, at the time, sorted this all out and I was unaware that it was not a buy to let.
Today I called the lender as I am trying to buy a new house., and they informed me of this. I was shocked. They said they had to put this on my file and communicate further in writing. Panic.
I spent thousands of pounds divorcing and fighting to keep this property 2 years ago and I don't know what is going to happen. I have searched this and apparently I could be imprisoned or pay a hefty fine. Everything I have done over the last few years is about having a buy to let, the insurances etc are all based on BTL.
What can I do ?
Submitted: 4 years ago.
Category: Property Law
Expert:  Clare replied 4 years ago.
Thank you for your question, I will do my best to assist.
Please do not panic.
The most likely outcome is that you will be moved onto a higher interest rate and this may be back dated.
You may also have to show evidence that the new mortgage is for residential rather than letting purposes
I hope this helps but please feel free to ask for more information if you need to
Customer: replied 4 years ago.
Thank you for your response
So once I get the letter, do I write to them explaining everything ? And then they should just increase rate ?
I am ready to go with the other mortgage for my new house, is the BTL issue going to go against me / hold up the new mortgage process ? That is when they go to completion this BTL issue will be flagged and cause delays ?
I am so close to completion and moving in I just want to know to expect delays and inform builder etc. appreciate your advice with this. And not panicking quite as much regarding mortgage fraud and possible imprisonment all weekend !
Expert:  Clare replied 4 years ago.
As soon as you get the letter then you can indeed simply write and explain what has happened.
It is unlikely that it will effect your current mortgage - but you need to be aware that it might especially if you are using the same mortgage provider.
It is not the form of Mortgage Fraud that is likely to lead to police involvement so please do not worry