Will they find out

silvercar

Bubblesmoney,

Your analysis concludes that OP will end up on the lenders SVR. I agree.

This does not lead to a high risk of repossession, plenty of people pay the lenders SVR without being repo'd. In OP's situation, renting the flat out will probably be less likely to lead to repo than otherwise.

Dan_Collins_2

For crying out loud just rent the bloody thing!

90% of the time the lender will grant you a consent to let or lease, if not they will ignore it unless you stop paying. Without an AST they would have problems with repo, the same with lodgers etc as they would not have a deed of consent.

Its all very complicated but if you tell us the lender we will be able to help you more.

JCR

When I wanted to let my property out last February I rang the bank and asked for their permission to let. They agreed with a £495 one off payment. I rang back and asked if this could be reduced - they agreed and changed it to £195.

My two year deal came to an end in June this year, so when I went to the bank fully expecting to be made to change to a buy to let - the advisor I saw at the bank said that it wouldn't be a good idea as the rates were much higher and advised me to go with a fixed rate for residential. I queried this as I said I was no longer living there and he said one department doesn't know what another department are doing in the banks and as long as the mortgage payments were being met - I should just keep quiet.:j

davidla

Hi
if you are worried about the bank finding out that you plan to do something illegal, why don't you call them and (without giving your name) say you are thinking of taking out a "normal" mortgage with them, and would the bank allow you to change the T&C halfway through the mortgage so that a lodger could live there?
David

bubblesmoney

silvercar wrote: »

Bubblesmoney,

Your analysis concludes that OP will end up on the lenders SVR. I agree.

This does not lead to a high risk of repossession, plenty of people pay the lenders SVR without being repo'd. In OP's situation, renting the flat out will probably be less likely to lead to repo than otherwise.

i doubt that she would get a 100% mortgage now for her total mortgage debt of £104,500. even if she did, counting an extremely optimistic rate of 8% (seeing her risk on defaulting) her monthly outgoing would be 697£ /month on interest only basis for 25y mortgage. if it is repayment then it will be £807 /month. i doubt she would be able to pay that when working part time excluding all other costs of renting.

on rightmove for glasgow renting for 1 bed flat the rental range is from 250£ (£250 onwards even for city centre flat) to 950£. i dont know what rental her flat will get. minus the rental agency management costs etc minus any vacant periods etc.

since she has already been declined 104500£ remortgage by her own bank, guess she gets stuck with the standard rate. dont know what the rate for her bank is? outgoing will depend on that.

her only chance will be if she gets a good rate from the bank without them insisting on further deposit or higher charges etc and if she gets a good rent amount. gamble she will have to take. otherwise she will have to continue working full time till the credit situation improves and her savings improve. also she will have to consider her renting costs in ireland plus degree course fees etc over and above her usual expenses even if she rents out her present property. will the sums add up, its for her to decide.

her rental costs in belfast might be cheaper though looking at this link but dont know if those flats are very far from her univ there etc.

but she is walking a tight rope now.

Retired_I.F.A.

Dan_Collins wrote: »

For crying out loud just rent the bloody thing!.

Or stick it on ebay

tuggy

Honestly DO NOT WORRY. they dont open random peoples files, they dont do spot checks...they'l never find out. the worst they do is make you change to a BTL but they dont care.

As long as the money comes in on time every month they are happy.

Honestly. trust me! Banks just want their £££

Plasticman

Don't worry about the mortgage - but do worry about the tax man and the 'rules' about renting your house out. As long as you are straight with the legal parts, who cares about the lenders T&Cs?

inmypocketnottheirs

Another point regarding the letting agency wanting consent to let. If you do not get this consent, just tell the LA you do not have a mortgage.

HTH

Rabiddog_2

The hole thing sounds unachievable.. to me it seems you are putting off the inevitable of selling off the property for a (biggish) loss. Even if you can rent it out, it wont cover the mortgage and other outgoings. Reduce the price or put off your degree for a year or two Not doing a degree means nothing in the great scheme of things. (N.B. I dont have a degree (except of common sense)). Will that course be there in two years time? yes.. will you be far better prepared with savings etc? yes.

Renting isn't the panacea you want to believe..