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Advise please I have to rent out my flat but have a normal mortgage!
kmgvet
Posts: 4 Newbie
I'm looking for some advise please!!
I bought a 2 years ago for £135k on a 95% mortgage with Halifax which was fixed until last month and is now on SVR of 7% an increase of £150/month.
I have now changed jobs and am moving into rented accommodation 2hrs north. I therefore have to rent the property out because if i sell it i think i will loose money on its value and it will take a long time to sell given the current climate! The question is do i have to change to a buy to let mortgage even though its my only mortgage! And if i do then i dont have enough deposit or equity in the house to qualify!
Please help!
I bought a 2 years ago for £135k on a 95% mortgage with Halifax which was fixed until last month and is now on SVR of 7% an increase of £150/month.
I have now changed jobs and am moving into rented accommodation 2hrs north. I therefore have to rent the property out because if i sell it i think i will loose money on its value and it will take a long time to sell given the current climate! The question is do i have to change to a buy to let mortgage even though its my only mortgage! And if i do then i dont have enough deposit or equity in the house to qualify!
Please help!
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I was in a similar position a few years ago. I informed my building society what was happening and they put my mortgage rate up one per cent.0
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Indeed - get in contact with Halifax and ask them for consent to let. They will notify you of any fees and changes to the interest rate payable straight awayI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Or they may refuse permission to let because your LTV is so high - it's probably over 100% based on the current value of the property. All you can do is ask.0
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Or not ask
Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
How did I know someone was going to suggest that? Not telling your lender that you are letting the property out is a breach of your mortgage agreement.0
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Thanks for all your help. I have made an appointment with Halifix for consent to let! BUt having thought things through- I am struggling already as the the rent would only pay half the mortgage at 7% SVR which i'm on at the moment so if the bank up the rate then im in trouble. I may have to sell the flat at a loss an take a loan out to pay of the rest of the mortgage! Wish id never bought it in the first place but i suppose you cant always predict the future!!0
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MarkyMarkD wrote: »How did I know someone was going to suggest that? Not telling your lender that you are letting the property out is a breach of your mortgage agreement.
How did you know?? You knew because there are a lot of people out there who are suffering from the current financial climate. It may be a breach but to some people it is a way to survive.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
No, I knew because there are always people on MSE who will suggest that the way to resolve any problem is to either break the law or to break the terms of their agreement with someone - usually because "they won't find out" and therefore it's deemed to be acceptable.
Strangely on other threads than this, there are those claiming that the credit crunch is, to at least some degree, due to "liar loans". What exactly is letting your property without your lender's knowledge or consent, if it isn't a "liar loan"?0 -
It may be a breach but to some people it is a way to survive.
It may also void his insurance, meaning if there is a fire he looses everything and is in one heck of a pile of negative equity.
You wont come back from that OP.[FONT=Arial, Helvetica, sans-serif]Rise like Lions after slumber
In unvanquishable number -
Shake your chains to earth like dew
Which in sleep had fallen on you -
Ye are many - they are few.[/FONT]0 -
It may also void his insurance, meaning if there is a fire he looses everything and is in one heck of a pile of negative equity.
You wont come back from that OP.
Firstly - what is "looses" and "OP"?
also, too late for the negative equity situation I think and finally......if we all lived in this perfect financially savvy world then this debate would not exist but whether you like it or not, this is happening (and if I hear one more cliche like "well it doesnt make it right" then you should go home and start again).Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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