Consequences of getting caught

francescawild

I have a fixed rate mortgage, with a company who do not allow buy-to-let mortgage.
A few months previously, due to a work move, it became necessary for me to move out of the house and rent elsewhere. In the meantime, I couldn't afford to leave the property unoccupied, so I rented it out privately.

Now, the inevitable has happened and the mortgage company have found out about this.

Right now, I haven't been contacted by the mortgage company, but can anyone offer any insight into the likely consequences that will result?

Financial penalties?
Legal action?
Repossession?
Immediate rescinding of mortgage?
A stern ticking off?

Right now, I am so scared about what might happen, so any advise is appreciated, so I can prepare myself for what is coming.

Thank you

foreversummer

Presumably you have a normal residential mortgage and some lenders will allow you to rent out your property. (This is not the same as having a buy-to-let mortgage).

Did you ask the mortgage company before you rented it out or are you just assuming that they would not let you as they do not offer buy-to-let?

happybroker

It's in your interests to speak to the lender as you won't get it sorted without doing so and this will only cause you more stress.

Lenders have different approaches to this so it's impossible to say what will happen though I don't see any thing like calling in the debt, repo etc being on the cards. They will want to see the agreement and may charge a fee, some change the package available.

Worst case scenario is they refuse to authorise the tenancy which means you will need to look at your options with your mortgage adviser. If the bank don't authorise the tenancy then this can invalidate your insurance and also mean that the tenancy agreement is unenforcable.

Give them a call, it won't be as brutal as you're thinking IMHO

francescawild

@foreversummer

No, the mortgage company absolutely 100% do not allow buy-to-let mortgages, and they don't allow people who take out mortgages with them to rent out their properties.

PayDay

happybroker wrote: »

If the bank don't authorise the tenancy then this can invalidate your insurance and also mean that the tenancy agreement is unenforcable.

Add fraud to that list. You issued a tenancy agreement but couldn't grant the tenant their legal right to quiet enjoyment because the lender had not given their permission.

PayDay

francescawild wrote: »

I couldn't afford to leave the property unoccupied, so I rented it out privately.

Why didn't you sell it?

How are you going to pay the mortgage now?

custardy

PayDay wrote: »

Add fraud to that list. You issued a tenancy agreement but couldn't grant the tenant their legal right to quiet enjoyment because the lender had not given their permission.

what options do mortgage holders have though(i mean this in general terms)
if circumstances change would they be looking at a remorgage and all the costs involved with that?

Dan_1976

You may find very little while happen. Worse case your repo's best case they ignore it to avoid any issues with deeds of concent etc.

They will probably insist that you either reside or sell it. At the same time in these harder times they will not want another property to sell.

They may just increase your rate and give you a time limit to sort your house out so to speak.

Who is the lender?

bigblackdog

fck i am in same situation , how do i find out wether i can let out my house ?
never even thought i couldnt , i am hoping to let mine out while away

_Andy_

bigblackdog wrote: »

fck i am in same situation , how do i find out wether i can let out my house ?

Contact your lender and ask for consent to let.

devon123

How did they find out?!