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Renting my house - do I need to change mortgage?

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24

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  • Warchcosi
    Warchcosi Posts: 13 Forumite
    OK, let me re-phrase the question as I don't think I explained it properly...

    I have heard that mortgage providers are legally obiligied to let you rent out your property on your current deal if your circumstances have changed since you originally signed the agreement. Can anyone confirm this?

    If I decide to rent out my property, can A&L force me to change my mortgage or can I keep my tracker rate?

    I'll look at the tax/certificate implications etc next...
  • theartfullodger
    theartfullodger Posts: 15,705 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    OP states"

    I have heard that mortgage providers are legally obiligied to let you rent out your property on your current deal if your circumstances have changed since you originally signed the agreement. Can anyone confirm this?
    "

    Hint: Easy way to confirm your rumour: 'phone A&L. £5 to your nominated charity if what your heard is true. (No really, £5 English Pounds...)

    Cheers!

    Lodger
  • carolt
    carolt Posts: 8,531 Forumite
    OP - yes, you are required to tell your mortgage provider, but the anecdotal evidence from this board and elsewhere is that some lenders are totally happy with it and charge nothing, or a nominal fee, whilst others insist on changing to a BTL mortgage at greater cost.

    You'll just have to hope it's the former - certainly many lenders do not insist on charges.
  • Pring
    Pring Posts: 40 Forumite
    carolt wrote: »
    You'll just have to hope it's the former - certainly many lenders do not insist on charges.

    Historically I think that was the case.. not so sure any more. It'd be interesting to get a table of comparison for this actually.
  • Warchcosi
    Warchcosi Posts: 13 Forumite
    I'm fine with a nominal charge to be honest. My concern is that A&L will try and force me onto another product when they actually have this alleged obiligation to let me retain my product.

    For some reason, I doubt the advice I get from the bank will be in MY best interests as opposed to theirs hence why I'm trying to get to the bottom of the legal situation before I start talking to A&L about it.
  • rent_and_buy
    rent_and_buy Posts: 171 Forumite
    Im going to rent my house out in the future, now i was just going to swap to a btl mortgage, but what im thinking now is go for a long term normal fixed mortgage, interest only, then when i want to rent just ask for consent, im currently with the nationwide and they have no propblem changing you over with no charge.

    Im thinking of taking out a 5 year fixed at 3.99% and then asking to change it over to a btl once i have got it, i could save over 100 pound a month.

    do you think they would wear it, or would they put my rate up?
  • carolt
    carolt Posts: 8,531 Forumite
    NeilInglis wrote: »
    Historically I think that was the case.. not so sure any more. It'd be interesting to get a table of comparison for this actually.

    No - I assure you this is still the case.
  • rent_and_buy
    rent_and_buy Posts: 171 Forumite
    carolt wrote: »
    No - I assure you this is still the case.

    how do you know?
  • carolt
    carolt Posts: 8,531 Forumite
    Check my post count - far too many hours spent on these boards, dear. :)
  • Pring
    Pring Posts: 40 Forumite
    carolt wrote: »
    No - I assure you this is still the case.

    Well I'm just basing it on my personal experience with HBOS no longer allowing people to do it. Perhaps it's just my lender being rubbish!

    As has been stated there's no way to know without consulting your lender. Just give them a call and ask.
This discussion has been closed.
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