Will they find out

quickquestion_3

Hi Dan and others,
thanks for replies. I am veering towards renting it out - I just wondered if anyone knew if I had to disclose my mortgage details to anyone.
I will need to register with the landlords reg in Glasgow, and with the property managment firm - are they going to need to know about my mortgage, and if so will they dob me in?

EdInvestor

This situation is very common. Typically lenders deal with it by

a) Just agreeing to the idea
b) Charging you a one-off fee for agreeing to the idea
c) Increasing the interest rate on your existing mortgage a bit
d) Requiring you to switch to a BTL mortgage (if you are on a repayament mortgage now, you would be sensible anyway to switch to interest only, as it's better for tax purposes with a letting flat).

It's very unlikely they would not let you do it at all.

Why don't you just call up and ask what your lender's policy is - or ask a mortgage broker?
BTW have you checked your lease to make sure there are no permissions required or charges made for letting?

happybroker

Take great care with this....the tenancy agreement may be unenforcable if you don't seek your lender's consent to the letting (Minimike this is one of the questions in your CeMAP learning material!)

Ring your lender and ask what the procedure is for gaining their consent and take it from there. Most lenders don't have an issue with it providing you abide by their rules.

Good luck

FraudBuster

.........................

quickquestion_3

My big fear is that if I call the bank and ask to be transferred to a buy to let mortgage they will say no. and then that's the end of that because they will be watching me!

I am worried they will say no because I originally was going to buy a house in Northern Ireland and try to transfer my existing mortgage. I currently have a 95% mortgage on an interest only basis. The total value of the flat (when I bought it) was £110,000 of which the bank lent me £104,500.

When I went in to the bank in May I expected to be allowed to borrow a little more as I bought my flat 2 years ago. In fact they were only willing to allow me 89,000 and that was only if I paid 10% and changed to a repayment mortgage.

I aksed how could this be - I have an excellent credit rating and have never missed a payment. they said it was due to the credit crunch they were restricting the amount of lending. They said they would not lend me the amount they lent 2 years ago in the current climate.

It is for this reason that I am afraid to ask them about the buy to let mortgage. They might demand a larger deposit of 15 or 20% (which i absolutely do not have) or they may just refuse. either way I am at a dead end.

happybroker

You don't have to ask for a switch to a buy to let mortgage just their consent to let the property under the terms of your existing mortgage.

You could ring and ask a general question as to how you go about getting consent to letting if you're worried about them "watching" you but I doubt they would do that anyway.

Who is the lender, I will have a look at their general terms and conditions for you?

charlie1970_2

Hi there I have rented property before and didn't tell them I was renting it out and they never discovered it! Its up to you but they can't repossess your property. If they do find out tell them you didnt realise you had to tell them! Your mortgage will go up and your insurances will too if you tell them you're renting it out. Good luck

minimike2

happybroker wrote: »

Take great care with this....the tenancy agreement may be unenforcable if you don't seek your lender's consent to the letting (Minimike this is one of the questions in your CeMAP learning material!)

Ring your lender and ask what the procedure is for gaining their consent and take it from there. Most lenders don't have an issue with it providing you abide by their rules.

Good luck

Lets look at the facts though....The sitiation is that we are already talking about a repo. So its either sit there, do nothing whilst trying to sell it, ultimately worst case is get repo'd.

OR

Try damned hardest not to get repo'd, break the Ts&Cs, take a chance, rent it out, pay mortgage, dont get repo'd. If things go t*ts up, sh*t hits the fan, no rent comes in, place gets repo'd.

In my view its better to try and avoid it if its going to happen anyway. If it all goes wrong the situation isnt any worse than what it had of been anyway.

Leon_W

If you were to ask me in a professional capacity I'd have to give you the line that it shouldn't be done, breaking the T&Cs etc etc

But if I were in the same position and it was the only option, would I do it ?

Hell - YES !

quickquestion_3

Hi There,
Thank you for all your replies.
happy broker you have a message!

Do you mind if I run the workings of my brain past you all?
hope not, here gos

My current mortgage deal comes to an end in December 2008. After that I expect to be on an insane interest rate because I have a 95% mortgage.

presumably any normal person would then look for a new better interest rate deal with my current / another bank.

However -
I would no longer be a normal person as I would be a secret student.
Does this mean I should wave goodbye to any chances of a better deal which may have reduced my monthly outgoings, but would also look at my income (and lack thereof) Would I would need to just pay the big rate at the end of my fixed 2 year term, keep my head down and just accept that's as good as it will get

Or

should I try to remortgage now with another lender and incur the redemption fee from my current lender before the whole world finds out that I am no longer in full time employment (or won't be as of September)

I wish that I could just get rid of the flat by some other way. my brain is melting with what if's.....

much obliged
G