Mortgage Question

[bindit]

Hi all,

My partner has a mortgaged property, her first flat, which is now rented out.

We now live in a house with a joint mortgage from different lender.

I've never got round to telling either mortgage lender about the other. Would anyone know if any penalties are incurred for having two mortgages, such as a higher interest rate?

Cheers

Rob

[Zod]

You're not going to get many replies without a title!

I'd be surprised if there were a penalty. They should already know because mortgages show up on credit searches.

[meeja]

Title now put in place

[Incorrigible]

If you're renting you should have a comercial mortgage (buy to let), I'm not sure if it's actually illegal but it might well be

Seek out Minimax, he's the bloke on here what knows

[Zod]

You don't need a commercial mortgage, but you do need the mortgagee's permission. If they check your credit entry, they will find out. Best to get it retrospectively, I think.

[bindit]

Thanks, can't believe i forgot to put a title on

Just wondering if we will be stung for more money as a consequence. My natural tendency is to play ignorant though..

[Pickled Piper]

If you are letting your property you are obliged to notify the mortgage lender. Many used to give you a hard time over it years ago and then hike the nterest rate. However, nowadays "buy to let" mortgages are very competitive and lenders tend not to hike the rate on you for fear of losing you as a customer.

I'm not sure what the implications are if you don't tell them.

pp

[Nevin]

If you don't tell them then you have "probably" technically defaulted on the terms of your loan and the lender will be entitled to demand repayment in full from you as at that date.

But they won't usually.