Do I need to inform mortgage company if renting out house?

minnie123

Fire_Fox wrote: »

We have given recommendations, but you seem to be looking for someone to tell you what you want to hear. Put the house on the market, it probably won't complete before October anyway, then move into your Dad's house. I can't believe the charges for early redemption are more than the cost of running two houses.

I am not wanting people to tell me what I want to hear - if you read back through the thread the only recommendations made say stay where I am and overypay on the mortgage and don't rent my dads house. It doesn't say anything about selling - one post hints at it but doesn't say it - that is why I asked what peoples recommendations were for confirmation.

Dinah93

Dinah93 wrote: »

Say it takes 5 years for the property to get back to an acceptable level for you to sell. Gonig by the level of interest you will have as shortfall over that time, plus a contingency for repairs nessisary, redecorating/gardening between tenants it is likely you will pay out at least £15,000 waiting for prices to rise. Obviously 5 years is a guess, however I don't think prices are about to shoot back up again, personally I think they have further to fall first, even if they stablise there is no indicator to show they will start to grow again. Add in the fact we're at a historic low for interest rates, and when your deal ends you'll likely be paying more interest per month than you are now would suggest you'll be paying out more to prop up this 'asset' than you had planned.

Think very, very carefully, a small loss now could save you a lot long term.

If my post wasn't clear enough, my personal opinion is that the best route financially would be to sell now.

vman

(I know it’s an old thread but...)

Many mortgages allow you rent out your residential property for a limited period of time without the need to change to a BTL mortgage. I suspect this is what you have done here as I’d be very surprised you’d get the mortgage swapped to a BTL in 24 hours with your current financing (negative rental coverage, negative equity). At the very minimum you’d probably need about 20% equity and 125% rental coverage. It’s also worth noting that most property management companies ask for proof that your mortgage company has ok’s the rental.