Can my brother be my tenant even if my mortgage doesn't allow it?

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I am concerned about the consequences as I will be going against the terms of my buy-to-let deal

Q I have been approved for a buy-to-let mortgage. It has always been my intention not to live in the property. I live in London and am buying a property in my hometown further north. It now transpires that my brother would be happy to live in the property. I know family members are not allowed to be tenants as part of the terms and conditions of the mortgage. He will pay rent, but at a reduced rate. What are the consequences for me if we go ahead with this plan? AM

A If you breach the terms and conditions of your buy-to-let mortgage by letting the property to your brother (or any other close relative), your lender would be within its rights to demand full repayment of the loan. If you don’t tell your lender that a close family member is going to be your tenant, you would be committing mortgage fraud, which could also result in you being asked to repay the mortgage in full. Even if your lender did allow you to let to your brother, it might also take issue with him not paying a rent that covers 145% of the monthly mortgage payment, which would have been one of the requirement on which your mortgage application was approved.

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