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renting house out
saff_2
Posts: 26 Forumite
Hi a mate of mine has recently rented his house out without the knowledge of the lender, he has kept up to date with payments and has never missed payments or anything like that. my concern is that when the lender finds out they will take drastic action and may even take possesion of the house? he has got landlord gas safty certificate & landlord insurance in place...will it be really be a problem thx
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Comments
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As I understand it, lenders charge more for mortgages on properties that are tenanted so they are likely to come after him for some extra money at the very least.
As he has now broken the terms and conditions of his mortgage, they may decide to take action against him. I should think they would expect the mortgage to be repaid, even if that means selling the property.0 -
I doubt they would go so far as demand the mortgage be repayed. The longer he leaves it the more likely he is to get caught. If he asks for permission to rent temporarily, he may be charged a one off fee (75-200 has been reported). If he asks to change to a buy-to-let mortgage he may find his interest rate increases by upto 1%.
Either way he needs to regulate the situation. Making the change now will make it less likely that his failure to notify is spotted. Waiting until he is caught could mean they establish the start of this.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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