Mortgage Q

Pythagorous

I am going to rent out my house whilst away for a year. What I would like to know is, do I need to let my mortgage company know of my intentions and what are the risks if I don't?

arnie&caseysma!

I had to ask permission from my mortgage lender last year to let out my property and they sent me out a form to complete. I could let for a max of 3 years initially with that company and then it was to be reviewed. It may be just a courtesy thing but I would let them know since they have a vested interest in the property.

Ian_W

It's not just courtesy, it's a condition of your mortgage agreement and some [not all] lenders do charge an admin fee or higher % interest rate for giving you permission to let. In fairness to them their risk becomes greater because if you default they can't repossess as easy with tenants in situ.
So if you don't tell them you're in breach of your agreement which they could I suppose terminate or levy penalties.
You should also tell your household insurers because if your tenants burn down the house they may decline the claim if they haven't been informed.