want to let my house out - change mortgage

nazia_naureen

I want to let my flat as my employer has offered free accommodation above the business, employer is family.

The letting agent says I need to change my mortgage to a 'Buy to Let' the girl I spoke to at Abbey had no idea whether I needed to or not!!

I may only be there 6 months or a year depends how it works out. Surely I shouldn't have to change my mortgage...what do you guys think/have experience of?

Many Thanks

Nazia Naureen

SuzieSue

All lenders have different rules and so you really need to speak to your lender. Some will allow you to stay on your current mortgage but will probably increase your rate as you are considered to be a higher risk if you are letting out your property rather than living in it. Some lenders might insist that you change to a buy to let mortgage as your letting agent has said.

If the girl you spoke to didn't know you should have asked to speak to someone who does.

G_M

Some lenders will give you "Consent To Let" on your existing mortgage. They may/may not charge an admin fee for this. Some will refuse this and insist you switch to a BTL mortgage.

You just have to ask. Make sure you speak to someone who knows what they are talking about, or do it in writing.

If letting, consider all this too....

Werdnal

Yes I am afraid you do need to atleast ask the lenders permission to let. They will either agree, sometimes with higher costs, or refuse, in which case you would need to change to a BTL. Resdiential mortgages are granted on terms that you actually live in the property, but letting will breach the mortgage agreement, and you could find the loan is cancelled and the lender will repossess. You will also need LL insurance as normal household policies will not cover you if you are not living in the property.

In fact, as many tenants are now aware that LL's need consent to let, they will often ask (as your agent has) for proof that you have this in writing, before you can let it.

Incidentally, you suggest you will only be letting for 6-12 months? What happens if your tenants decide to ignore all notices to leave and will not move out when the time comes? It does happen.

I would also advise you to read and understand the points in the link GM has posted above. Even if you are using an agent, you need to be aware of all your obligations as a LL, especially declaring your income for tax.