Mortgage Help!!!!

itsawrap

Hello,

This is rather long winded so I apologise!

We have a minimal mortgage (£23K), and due to a new job are re-locating down south, we dont want to lose all ties with where we are currently and as a result have taken the decision to let our property. We contacted our mortgage provider (Ing) as we didnt know if we needed to seek permission to do this.

Upon contacting them they said that moving for a new job did not qualify for a valid reason under this product (a variable rate mortgage) and as such a charge of 2% on top of our current rate (1.39%) above the BOEBR would be applied if we were to go ahead, however it was in breach of the T&C's and so as such we couldn't do it, I questioned them asking that as it was in breach of T&C's could we let the property or not, they said no we couldn't!!!! I was still confused, what was the point of them telling me that a 2% charge would be applied if we were to do it????? I got them to clarify with the relevant dept whether we could or could not do it, they came back and said that we would be in breach of the T&C's and so therefore couldn't do it, however if we were to do it and they were to find out then the 2% charge would be enforced, however they were such a big company that the liklihood of them finding out was minimal as they could not track each individual case, I asked them if we were honest about it could we just take the 2% hit, they said if I were honest about it I couldnt do it!!!!! So basically I have to lie!

I have a number of concerns regarding the above:

- We do not really want the hassle of moving to another mortgage provider so would like to stay with Ing if possible
- We are worried if we do lie and they find out that they can retract the mortgage immediatly
- We would be getting Landlord Insurance for the building, but are worried that this will not stand up if Ing deny any knowledge of knowing the property was being let

We were half wondering about replacing the mortgage with a loan to get out of this vicious circle but with a loan we would not be able to offset mortgage payments/rent due to income earned from renting the property!

We dont know what to do for the best - we need HELP PLEASE! :-)

If you have made it this far, thank you very much! :-)

Kind regards to all

itsawrap

rsykes2000

Personally from what you have said, I would not trust ING at all on this matter as they are clearly confused themselves. A mortgage that small will be a doddle to sort anywhere ele and you would be able to get an assurance at the time you take it out that you can let the place.
You really don't want to be letting it and have the insurance invalid. A place to seek more advice on landlord-y things are the forums on http://www.landlordzone.co.uk/forums/

Conrad

rsykes - but the new lender on a buy to let basis will want a rate at least as high as ING. Buy to let attracts higher rates. Your own pensions / investments provider is the sort that provides money to ING to lend out. As such they cannot just lend YOUR money willy nilly.

rsykes2000

Conrad wrote: »

rsykes - but the new lender on a buy to let basis will want a rate at least as high as ING. Buy to let attracts higher rates. Your own pensions / investments provider is the sort that provides money to ING to lend out. As such they cannot just lend YOUR money willy nilly.

Yep, I'm aware of that, however ING don't seem to be able to sort it so moving and getting guaranteed letting consent with someone else at the same rate could be worth it.