My Mortgage and Consent to Let - HELP!!

Kate_Jody

Hi
Due to the credit crunch we are struggling to pay our mortgage and want to rent it out. We were advised that we would need to let the mortgage lender (Northern Rock) know. We were asked to fill in a consent to let application form. However, this application has been declined.

Help! What can we do? We are relocating and have somebody lined up to rent our house out. What would happen if we just decide to rent it out anyway?

herbiesjp

What is the property value?
What is the mortgage amount?

What rental income do you expect to get?

koexelek

If another lender will take it, most sensible thing to do would be to remortgage it to someone else on a buy to let basis.

Whether you can or not will depend on the answers to the questions Herbiesjp just asked.

dunstonh

Due to the credit crunch we are struggling to pay our mortgage

Why has the credit cruch caused you a struggle?

Not being judgemental or rude just interested as I cant see why that would cause an existing borrower to have much of a problem. Mortgage rates are still low. You already had the mortgage and even if you came off a deal and cant get another, the variable rate is still low (unless you are on some horrible sub prime scheme).

What would happen if we just decide to rent it out anyway?

Technically you are in breach of the mortgage conditions and they could start repossession against you. However, that is highly unlikely as its a worse case scenario. More common are increased mortgage rate, warning letters telling you to stop. In reality, there is little they can do unless they want to be bloody minded.

herbies questions are valid as consent has been rejected which suggests the letting terms you have proposed are not very strong.