home owner - buy to let

tinorangi

hello forum! im currently on a 95% homestart mortgage with HSBC and am looking at renting out my house whilst away for a year or two will this affect the terms of my mortgage or will i be able to rent it out without any issue. ive been in th house for 3 years now.

thanks!!

lolarentt

You'll need to consult your lender if you want to let it out. Of course many people don't in your circumstances, but this could give you problems if anything major goes wrong while your away.

chucky

as you're 95% you may struggle to get permission from your lender, they prefer anything less than 75% current LTV. however, check first though.

ad44downey

tinorangi wrote: »

hello forum! im currently on a 95% homestart mortgage with HSBC and am looking at renting out my house whilst away for a year or two will this affect the terms of my mortgage or will i be able to rent it out without any issue. ive been in th house for 3 years now.

thanks!!

I wouldn't if I were you. Buy to let is a horrible sleazy business as recent events have conclusively proved.

cupid_s

I also have a mortgage with HSBC and we recently enquired about renting the house out. We were told we would have to change to a buy-to-let mortgage to do this, and the arrangement fee and interest rate on this was ridiculous. We were lucky we had less than 80% LTV which we were told was the limit for being able to change to a mortgage like this.

We still might rent out - but we'll just have to wait until next year when our mortgage is paid off and we can do what we like!

jay3_2

You must contact your lender first - and also your insurance company. This isn't just a matter of putting ticks in boxes; if anything untoward happens, you could find yourself at the wrong end of a lawsuit, or at the very least, hassle and wasted money. I let my house (with a 95% mortgage, though this was 12 years ago!). As chucky points out, 95% may not be acceptable these days. Letting can be OK, if you follow a few common sense golden rules - use a reputable agency, make sure you/they get thorough references, get proper insurance, get a good inventory drawn up, adhere to ALL safety regulations etc.

Don't expect to make much if any money though. It is likely that your expenses will swallow up any monthly profits.

boyse7en

Letting can be OK, if you follow a few common sense golden rules - use a reputable agency, make sure you/they get thorough references, get proper insurance, get a good inventory drawn up, adhere to ALL safety regulations etc.

Don't expect to make much if any money though. It is likely that your expenses will swallow up any monthly profits.

Good points there, plus I'd add the fact that if you are abroad then any problems/repairs that arise will be much more difficult (and you can read into this, expensive) to resolve.