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Stuck between a rock and a hard place.....
Comments
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What if they did find out? Would they up your APR?0
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im not holier than thou, but doesnt it leave your tenants at risk if the let is not authorised by your lender?
If the landlord didn't pay the mortgage the tenants would have less rights if the lender repossessed. The lender would be under no obligation to ackowledge the tenancy. The tenants could probably go to court and a judge would give them 14 - 28 days to leave, whereas with a BTL mortgage the lender would be obliged to let them stay for the fixed term.
To be honest if the tenants pay the rent, the landlord can afford the mortgage and so everyone should be happy. If the tenant doesn't pay the rent, leaving the landlord unable to afford the mortgage, and is consequently turfed out I would have no sympathy.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
poppysarah wrote: »What if they did find out? Would they up your APR?
In the case of HBOS - they would probably call in the loan as they are desperate to claw back money.
What a judge would say is possibly a different story.
This is going to open up that big "check if your LL has consent to let" debate0 -
When you take out a LL policy, the insurer will ask if there is any other interested party that needs to be noted on the policy document....this means your mortgage lender or anyone else who has a stake in the property.
If you have borrowed money and secured it against a property, it is generally a condition of your mortgage that you note the lender's interest in the property on your insurance forms.
If you insure with Alan Boswell, they will happily take your money, but if it all goes wrong and you have to claim you are running one hell of a risk not having your lender's permission to rent the property out. This would make your policy invalid and your lender could ask you to repay your loan IMMEDIATELY because you have broken your contract.....
The bottom line of this is there is no point in taking out LL insurance at all!
If you are going to risk anyting, risk the lender not finding out you are renting it out.
Also, a lender cannot reasonably withhold permission for you to let a mortgaged property out. If your job move is imperative, I would contact the building society ombusdman and have a chat with them and see what they say given your circumstances.
http://www.financial-ombudsman.org.uk/about/index.htmlThe only thing to do with good advice is to pass it on. It is never of any use to oneself. (Oscar Wilde);)0 -
why would the insurance not be valid if the lender doesnt give permission??0
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Here we go....scrummymummy wrote:If you insure with Alan Boswell, they will happily take your money, but if it all goes wrong and you have to claim you are running one hell of a risk not having your lender's permission to rent the property out. This would make your policy invalid and your lender could ask you to repay your loan IMMEDIATELY because you have broken your contract.....
I've explained this in post #6. If the landlord is declaring to the insurer that the property has tenants and taking out the appropriate insurance that allows tenants, the claim wouldn't be denied. The lenders interest is noted on the policy because they have a financial interest in the property.
Don't add 2 + 2 and make 5.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
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scrummy_mummy wrote:I would contact the building society ombusdman and have a chat with them and see what they say given your circumstances.
http://www.financial-ombudsman.org.uk/about/index.html
How long do you think it would take to get an answer? 3 months? 6 months?
How a high a flag do you think this would put on desperate4help's mortgage account?I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Not really keen to highlight myself more than I have already done to HSBOS, especially if it wouldnt resolve itself quickly.
Have to say theres no way I would rent without insurance - that would be madness and really unfair to any potential tenant.0
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