moving out and renting out my flat - will this affect my mortgage

zebedy

Hi,

I have a fixed rate mortgage but in a few months i am going to be moving out of my flat and will be renting it out.
I believe I need to inform my mortgage lender of this change - is this just for their information or will they make any changes to my mortgage, might there be any cost implications?

thanks,
Zebedy

pldd4

they normally charge a letting fee of £100 per year or a logner one for £250.
Not sure about the actual mortgage repayments.

missile

You must tell your mortgage lender and insurance provider. There are several other things you must do, like get a landlords certificate for gas and electric, check soft furnishings for fire labels and you may have to register with local council as a landlord. Even although you may not use one, I suggest you speak to local estate agents specialising in rental property. A "good" one is a font of useful advice and information pertinent to your area.

When I let my properties there was no charge from the morgage providers, but one insurer decline to renew the policy and I was forced to look elsewhere, but whoopee, got it cheaper elsewhere.

Hope this helps?

regularsaver1

you have to get the lenders permission - not just tell them

most charge a fee and can also charge you a higher rate

most have conditions that the property must be managed also

missile

regularsaver1 wrote:

you have to get the lenders permission - not just tell them

Good point, it will certainly be a condition of your mortgage. Also, the insurer may not cover you for theft / willful damage by your tennat.

You will also need to advise your council of your change of address.

silvercar

You can either ask permission from your lender to rent the property out or you can "go the whole hog" and ask to convert it to a buy-to-let mortgage. The first option is generally cheaper and easier especially if you don't need to get another mortgage elsewhere.