Letting our House - shoud we tell our lender?

Henry511

Hi Everyone,

My wife and I are relocating 200 miles to be nearer to my father in law who has become very ill recently.

We're in the middle of a 3 year discount variable mortgage deal with the Furness BS which has an approx £5,000 get out clause; the house has lost 25% of it's value over the past 18 months but luckily we're not in negative equity on the Mortgage.

We want to hold onto the house to the end of the 3 year period hoping that we'll get some of the cash back that we've lost, and also hopefully not have to pay the £5,000 to get out of the deal.

The problem with this is that we'll need to let the property out, and the mortgage agreement doesn't allow for this.

Should we tell our lender (I've checked and intend on changing the insurance what ever) and does anyone have any ideas on if they're likely to let us continue without having to buy out of the contract?

thanks,

Henry511

_Andy_

You need to ask for consent to let.

This has been discussed numerous times if you do a search for it, including the pros and cons of informing/not informing the lender.

Henry511

thanks for that

I don't want to ask for consent if they're just likely to say no - any ideas (I've not been able to find anything) on our kind of circumstances, ie we're not in negative equity on the mortgage....?

Henry

Conrad

Note your current insurers are supposed to advise the lender of any changes.

You ask 'should we tell our lender' and then say in post 2 'I dont want to ask for consent if they are likely to say no'.

Your question is unanswerable. No one knows whether they will grant consent. If they do grant consent they might apply a higher rate and charges.

There are people who do unauthorised lets - it's pretty common really. The main risk in my eyes is the insurance being invalid were the tenants suffer and accident or something. Strictly speaking it would be deemed fraud, but in reality I've come accross people that were found out and nothing happened to them - the lenders were just happy the payments were being met. MP's I'm sure have indulged in such.