Residential mortgage.

alanmiow

Hi,
We currently have a residential mortgage on our 5 bedroomed house and we are thinking of doing Bed & Breakfast from 2 of our bedrooms. We have checked with our local council who have advised that as it is less than 50% of our bedrooms being used we will not have to be registered as a business and incur business rates. Will we still be able to keep our residential mortgage?

Conrad

Theoritcally you are supposed to get the lenders consent for such a thing but I can tell you I've known some 'pillars of the community' types do just such things without obtaining permission. Of course I'm not suggesting you break any rules here, just telling you the reality. I used to work with many a highly esteemed Russel Group academic, and they got up to all sorts...... just as Politicians do, just as holyier than thou TV journalists do - I've seen it all.

Be careful about ammending your home insurance correctly.

alanmiow

Thanks for the reply,is there much likelihood that they will give consent?

Conrad

alanmiow wrote: »

Thanks for the reply,is there much likelihood that they will give consent?

It's doubtful. 1 or 2 lenders will allow some subletting but B&B would not be something any lender would agree to in writing, but as I say people do none the less run them on mortgaged residences. You need to balance risk / reward.

alanmiow

The mortgage we have at the moment is a 5 year fixed at 5.39% and will come to an end this October. If we move to a commercial mortgage would we get a fixed rate and any idea of the likely rates available?