Can I rent out my home?

franklee

deadpheasant wrote: »

I'm in a similar situation too. I'd like to move in with my girlfriend of 2 years. We both bought our houses in the height of the 2007 housing madness. I could only get a mortgage with Northern Rock and I had to get a Together mortgage as I didn't have any savings.

I've been living in it for two years now and have 3 years left of my interest only tie-in period. I'd love to sell the house and be clear of it but that would leave me with a £24,000 deficit (the unsecured loan part of the Together mortgage) which NR will hike up to 13% APR (states that they will add 8% onto the loan as security as I'd no longer have a property to link it to).
So I was looking into renting it out. But I'm a bit wary of ringing NR to find out more info. Was thinking of just renting it out without consent but I know my luck and I bet it would come back to me to haunt me.

The rent I could get would not cover the mortgage payements and I'd have to put in about £200 - £220 in from my own wage every month. But this is fine and I'm happy to do that as long as NR would let me. Of course I'm aware that I'd have to get amended Buildings insurance to suit. (if I rent out the house Unfurnished then I'm right in thinking that the tenant can get their own contents insurance?).

I've been told by a couple of other sources to just rent out the property and don't tell NR - as long as they get their money then there's no harm done. I'm a little unsure about this, but I'm very reluctant to have to pay an extra 1% (or more) on a very interest heavy mortgage and I'm not even sure I'd meet their criteria for a Consent to Let agreement anyway - no payment have ever been missed, it's just the LTV etc.

So I'm stuck between a hard place and Northern Rock...

My ideal situation would be to rent out without consent to a friend who I trust and not tell NR, but we don't live in an ideal world do we?

Bear in mind that without consent to let the tenancy isn't binding on the lender. This puts the tenant in a vulnerable position so clued up tenants and decent letting agents will ask for some proof you have consent to let. See:

http://forums.moneysavingexpert.com/showthread.html?p=23663123#post23663123