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Renting my house - armed forces???
baxterdog
Posts: 12 Forumite
Hello all,
First post so please be gentle!
My wife and I have a residential mortgage with Birmingham Midshires. I am in the Navy and it looks as though I will be posted abroad later this year for about 2 years.
Anyway, I rang BM to ask them about what I would need to do to rent the place while we are away. I was told that (as of today) there would be no fees and I would not need to go on a BTL mortgage. However, the lady mentioned that BM rules are changing 'soon' and that I may need to pay a product fee (she could give me no idea of the likely cost of this) when the rules change.
If anyone could advise me where I stand i would be grateful as I am not slightly confused about where I stand. I assume the mortgage company have me to ransom and can demand whatever they like?
First post so please be gentle!
My wife and I have a residential mortgage with Birmingham Midshires. I am in the Navy and it looks as though I will be posted abroad later this year for about 2 years.
Anyway, I rang BM to ask them about what I would need to do to rent the place while we are away. I was told that (as of today) there would be no fees and I would not need to go on a BTL mortgage. However, the lady mentioned that BM rules are changing 'soon' and that I may need to pay a product fee (she could give me no idea of the likely cost of this) when the rules change.
If anyone could advise me where I stand i would be grateful as I am not slightly confused about where I stand. I assume the mortgage company have me to ransom and can demand whatever they like?
0
Comments
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EITHER: you obtain "Consent to Let" from your existing mortgage provider - this is entirely at their discretion and on their terms - it may be time limited or not, it may be free or not. Yes you are being ransomed by them if you deal only with them. Whether they could vary the terms after granting it, ie impose fees at a later date is down to the terms and conditions of your agreement with them
OR:its a free market so you remortgage elsewhere (assuming you are not penalised by BM through early redemption charges etc). If doing so with a new provider, and in the knowledge you will shortly be renting it out, it is less likely they would grant a residential mortgage and immediately award consent to let so you'd probably have to get a BTL - typically these require large deposits/equity (25%+) and will be based on a rental income multiple (eg rent must be 125% of monthly mortgage cost) rather than a salary multiple
not sure what else you want to know, the rest depends on BM, there are no national "rules" if thats what you mean , each company simply operates to its own terms and conditions, and those "rules" are entirely of their own making, if you as the customer don't like 'em simply go elsewhere in the market or negotiate harder with BM0 -
Have you tried asking this question on the Armed Forces moneysaving board. There will be many people who have been in this situation.0
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