Renting out on a "normal" mortgage

ilovesaabaeros

Does anyone know if there is an issue with renting my property out if I have a standard mortgage, rather than a buy-to-let specific one? My mortgage is with the C&G if that makes any difference.

I know I can always call them and ask, but there is the chance that they will then catch wind of my scheme and if there is an technical issue rather than a practical one then they will scupper it...

Cheers for any info.

Alan_M_2

The terms of your mortgage will undoubtedly be for you living in the property, if those circumstances change you will be obliged to inform the lender.

clutton_2

if you let it to tenants and there is an insurance problem - you will not be coverd unless you have told your lender and insurance company - is it worth it - you are playing with folks lives .............

Alleycat

Or if it ends up getting repossessed, your poor tenants would end up shafted.

seven-day-weekend

I had a residential mortgage with G & G, I just had to pay a fee (can't remember how much but it wasn't £1000s!) and they gave me formal permission to rent.

RHemmings

Alleycat wrote:

Or if it ends up getting repossessed, your poor tenants would end up shafted.

The poor tenants could end up suffering financial loss due to your actions. And as far as non-lawyer I can see, they would be justified in suing you.

androobe

I used to have a mortgage with the evil First Direct, (before they were evil)... they let me let my house out without any extra charge. Depends on the lender and your own circumstances I believe.

prudryden

If insurance coverage is a potential problem, then just ask them. It shouldn't increase or decrease their risk assessment of potential liability as long as they know you are renting out the property.

When applying for a loan some time ago to buy another property for letting, I was actually told by a senior representative of one of the Big Four banks that the reason I had to get a commercial loan rather than a normal mortgage was NOW GET THIS = we want a piece of the action.

Mrs_pbradley936

The mortgage people will let you but charge a small fee (well mine did that is the Woolwich) and the insurance went up by about 30%. Just call the mortgage people and ask, tell them you are think of travelling or what ever and considering renting your place and what formalities you would need to comply with.

Mrs_pbradley936

The mortgage people will let you but charge a small fee (well mine did that is the Woolwich) and the insurance went up by about 30%. Just call the mortgage people and ask, tell them you are think of travelling or what ever and considering renting your place and what formalities you would need to comply with.

rosysparkle

You must get consent to let from your mortgage provider. Some lenders insist on you moving to a different product, most just grant consent as a formality. Some charge an admin fee and some don't. Some lenders require you to use their approved AST agreement.

You will need to let your insurance provider know, and you may have to take out a new buildings insurance policy that covers let property.