Can I rent out my home?

Ed_S

Hello,

Sorry if this is a daft question or if this is a common question (I did a search, but couldn't find what I was looking for)

I currently have a mortgage with Northern Rock (Together Mortgage I think it's called) and until recently, lived with my partner and two children. Without going into too much detail, we no longer live together and i'm living here on my own.

The mortgage is in my name only and I'm wondering whether I can rent out the house without re-mortgaging onto a buy-to
-let mortgage?

I think i'm probably in negative equity, as I borrowed 102% of the property value just under two years ago, so I dont want to sell, and remortgaging may not be possible.

I dont really want to live on my own, so planned on renting out the house and moving back in with my Mum for a bit (I'm 24, so hopefully that doesn't sound too sad )

Can anybody advise?

Thanks in advance

Thrugelmir

eddysmiley wrote: »

Hello,

Sorry if this is a daft question or if this is a common question (I did a search, but couldn't find what I was looking for)

I currently have a mortgage with Northern Rock (Together Mortgage I think it's called) and until recently, lived with my partner and two children. Without going into too much detail, we no longer live together and i'm living here on my own.

The mortgage is in my name only and I'm wondering whether I can rent out the house without re-mortgaging onto a buy-to
-let mortgage?

I think i'm probably in negative equity, as I borrowed 102% of the property value just under two years ago, so I dont want to sell, and remortgaging may not be possible.

I dont really want to live on my own, so planned on renting out the house and moving back in with my Mum for a bit (I'm 24, so hopefully that doesn't sound too sad )

Can anybody advise?

Thanks in advance

Speak to the NR. Renting out the property may not be the answer to your problems.

Jowo_2

Some lenders don't require the recipient to remortgage but charge a fee to consider the permission to transfer it from residential to buy to let. There was a thread on this forum a week or two ago where a lender refused permission.

Have you considered taking in lodgers as an option where you are a live-in landlord?

G_M

Most (all?) standard mortgages have clauses saying occupancy must be the mortgagee/family, not letting without permission. So you should get permission &/or switch to BTL.

Having said that not everyone tells the bank, and the bank a) is unlikely to know and b) unlikely to do anything - unless there's a problem - which basically means mortgage arrears.

If you get into arrears and the bank then finds out, they can get posession of the house a) from you and b) from the tenants (who will have no rights).

Whereas if you get bank's agreement up front the tenants will have a tenancy agreement binding not only on you but on the bank too, which gives them some/minimal protection.

Ed_S

Jowo wrote: »

Some lenders don't require the recipient to remortgage but charge a fee to consider the permission to transfer it from residential to buy to let. There was a thread on this forum a week or two ago where a lender refused permission.

Have you considered taking in lodgers as an option where you are a live-in landlord?

Renting out a room isn't really an option, as it's only a 2 bed House and I need to keep the second room for when the kids come and stay over.

Most (all?) standard mortgages have clauses saying occupancy must be the mortgagee/family, not letting without permission. So you should get permission &/or switch to BTL.

Having said that not everyone tells the bank, and the bank a) is unlikely to know and b) unlikely to do anything - unless there's a problem - which basically means mortgage arrears.

If you get into arrears and the bank then finds out, they can get posession of the house a) from you and b) from the tenants (who will have no rights).

Whereas if you get bank's agreement up front the tenants will have a tenancy agreement binding not only on you but on the bank too, which gives them some/minimal protection.

I assume that if I go through a letting agency, they will do checks to make sureI have a BTL mortgage?

pinkshoes

If you lived there with your partner and two children, then I'm guessing you have more than one bedroom??

Take the smallest room for yourself, and rent the other(s) out to lodgers. It's a much less complicated way or getting help to pay your mortgage, and you can still stay in the property.

silvercar

eddysmiley wrote: »

I assume that if I go through a letting agency, they will do checks to make sureI have a BTL mortgage?

Some will be bothered, some won't. Due to data protection, there are no checks they can do. All they can do is ask if you have consent from your lender. Some letting agents will ask for proof, some won't. At the end of the day it is your liability if you let without consent. Letting agents act for the landlord not the tenant.

Ed_S

pinkshoes wrote: »

If you lived there with your partner and two children, then I'm guessing you have more than one bedroom??

Take the smallest room for yourself, and rent the other(s) out to lodgers. It's a much less complicated way or getting help to pay your mortgage, and you can still stay in the property.

See above post, I need to keep the second bedroom for the kids when they stay over.

Torby

eddysmiley wrote: »

See above post, I need to keep the second bedroom for the kids when they stay over.

How do you intend doing that if a) you dont want to be a live in landlord, b) you want to let the house and c) you're going to live with your mum...

remember the phrase "have your cake and eat it"

Ed_S

Torby wrote: »

How do you intend doing that if a) you dont want to be a live in landlord, b) you want to let the house and c) you're going to live with your mum...

remember the phrase "have your cake and eat it"

Sorry, let me be more clear about my situation / options.

My number one priority is being able to see my kids and have them stay over, whether that be at my house, or my Mums.

I'm not happy living in my current area, as it's a bit away from friends & family, therefore i'd like to be able to buy somewhere closer to them in the future. Options:

1. Continue living at home, keeping the second bedroom for the kids. With no real oppotunity to save money for a deposit on another house.

2. Rent out my house, move in with my Mum for 6 - 12 months. Have the kids stay over at my Mums in the spare room (3 bedrooms). Save the cash that I make on rent / save on bills etc, for a deposit on another house. Sell up once i'm no longer in negative equity & buy somewhere else nearer to friends & family

3. Sell my house, try to pay off the mortgage somehow (which might not be possible). Then save for 6 - 12 month whilst living with my Mum and buy another house nearer to friends & family.


I'm just trying to gather the facts at the moment, so that I can make a decision.

Nosht

Just beware that house insurance could be voided if letting not declared.

N.