Will my interest rate change if I rent my house ?

Leon1234

Dear All - first time threader - I currently have a 25 year tracker mortgage on my family rowhouse, commenced 3 years ago with one of the big banks. However I am now renting out my property and neither I nor my family live in it. Should I inform my bank ( if that is what most do ) and as a result, what are the likely consequences ? ( change of terms with higher interest etc ? ) Will it be deemed a buy to let and hence the bank will want to see that it pays its way ?

Also I only intend renting it for a year, so is there a minium length of time etc before the bank can get involved ?

Hopefully someone has experience with this - cheers to you all.

nico1977

Hi
You should really speak to your lender and ask there permission to allow you to rent it. This doesnt mean the interest rate will rise although there is a possibility. Depending on the lender they will give you 'Consent to Lease' and your mortgage will then potentially remain the same. Once you are no longer renting the property you can then amend accordingly.

Who is the mortgage with?

Leon1234

HSBC - thanks for the advice

nico1977

If you speak with HSBC I have a client on a 'Consent to Lease' with them at the moment they are usually quite good in these situations. It might be worth ringing the mortgage helpdesk or speak to a local branch they should be able to guide you further on the procedures. Hope this helps.