Mortgage lenders cracking down on “accidental landlords”

Mortgage lenders cracking down on “accidental landlords”

Lenders are launching a tough crackdown on “accidental landlords” who let out their own homes without telling their bank.

It is thought that in order to avoid a higher interest rate or switch to more expensive buy-to-let loan that large numbers of borrowers are keeping quiet about their arrangements.

Borrowers have a contractual obligation to inform their lender if they want to let a property.

Many will face a rate rise of between 1 and 2 percentage points, plus an administration fee on top.

Lenders are now starting to trawl the electoral register, social media websites and online letting agencies for signs that a property has been put up for rent.

Conveyancers need to be careful they are not party to such avoidance efforts or they may become party to a fraud.

General News

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