Renting out my house - total novice - advice please

NEH

SuzieSue wrote: »

But why can't they tell you what their policy is before you take out the mortage - it should be in the terms and conditions so that you can decide whether you want to take out the mortage and not be at their mercy when your circumstances change. You are very lucky that all they want is £250. A lot of lenders want to charge a higher interest rate and that is if they allow it at all.

I suppose it's like anything they can't accomodate every eventuality....It's like anything, insurance things can change, that's what life is....It's llike when I moved here for health reasons my car insurance went up because i have a drive instead of a private car park, they didn't write that into the policy but it's something you accept, it's youe circumstances that have changed, it's not the insurance companies fault...(though trust me the bizarrenesss of it does piddle me off...:rotfl:)

SuzieSue

NEH wrote: »

I suppose it's like anything they can't accomodate every eventuality....It's like anything, insurance things can change, that's what life is....It's llike when I moved here for health reasons my car insurance went up because i have a drive instead of a private car park, they didn't write that into the policy but it's something you accept, it's youe circumstances that have changed, it's not the insurance companies fault...(though trust me the bizarrenesss of it does piddle me off...:rotfl:)

Yes, me too. Was your lender happy for you to rent your property out indefinitely on a residential mortage? Do you have low LTV?

NEH

SuzieSue wrote: »

Yes, me too. Was your lender happy for you to rent your property out indefinitely on a residential mortage? Do you have low LTV?

As i said we decided against renting out....We added up the costs and we wouldn't have made much profit to make it worthwhile for all the hassle and paperwork and ongoing stress it would have involved so we have decided to sell it.

SuzieSue

NEH wrote: »

As i said we decided against renting out....We added up the costs and we wouldn't have made much profit to make it worthwhile for all the hassle and paperwork and ongoing stress it would have involved so we have decided to sell it.

Yes, but if you had decided to rent it out, were they happy for you to do it indefinitely on a residential mortgage?

NEH

SuzieSue wrote: »

Yes, but if you had decided to rent it out, were they happy for you to do it indefinitely on a residential mortgage?

They never gave us a time limit.

clutton_2

its not that long ago that Halifax was charging thousands to get consent to let....

SuzieSue

clutton wrote: »

its not that long ago that Halifax was charging thousands to get consent to let....

So you can hardly blame people for renting their property without permission.

This is such a common problem now, that it should be in the lender's terms and conditions.

DVardysShadow

SuzieSue wrote: »

Of course you should ask your lender before you rent your property out, however the reason people don't is because they don't know what the lender is going to say. What if you ask them and they say no or increase your interest rate by 2%? What do you do then and by asking them you have alterted them to the fact that you are thinking of letting your property out. If the lender laid our their policy in their terms and conditions then it wouldn't be a problem, but they don't so is it any wonder that people don't trust them and so don't ask them. It is totally the lenders' fault.

Of course if you don't tell them and you do default, the difference is that your tenants get booted on to the street immediately, rather than being left to the end of the term. But you've got your 2%, so that's alright.

DVardysShadow

detroidam wrote: »

There is a world of difference with your comparison - it is against the law not to have taxi insurance.

There is a world of difference in the law, but not in the morality.

Having taxi insurance is necessary to recompense customers for the consequences of mishandling the taxi

Getting the consent of your lender to rent out is necessary to protect customers from the consequences of mishandling your finances.

SO, as I see it, the law is deficient. But if there is a moral case for doing something, decent people don't need the law.

SuzieSue

DVardysShadow wrote: »

Of course if you don't tell them and you do default, the difference is that your tenants get booted on to the street immediately, rather than being left to the end of the term. But you've got your 2%, so that's alright.

But it needn't be an issue and no tenants would suffer if lenders were obliged to be open about their policy before borrowers took out a mortage. As it is at the moment, lenders can change their policy as and when they want and this is what causes the problems and harms everyone especially tenants.

If the system is unfair, you can't blame people for not following the correct procedures - the system needs to be changed.