New house/mortgage and want lodgers...must notify HSBC...problem?

jswill100

Hi there,

First post on the forum but a long time user of the site...great stuff!

I just bought a 4 bedroom house. I intend to live there and rent out 3 rooms to lodgers (on a semi-informal resident landlord kind of basis). I am told I must let my mortgage company know, but I have a "standard" mortgage rather than a buy-to-let one. Is this something I need to worry about (either in terms of them rejecting the notion entirely, or perhaps altering my mortgage somehow).

Any advise / experiences would be really appreciated here as i am a bit worried as I always banked on renting all my rooms. I am with HSBC and I own about 60% of the property.

Many thanks,
John

dimbo61

John you need to look up lodgers/landlords and renting out a room or 3
Speak to the local council first
HMO, Gas safety checks, HMRC etc

jswill100

Thanks - I have all that under control (it does not quality for a HMO, although it seems I should get gas/elec certificates on an annual basis anyway to be safe. Tax I also understand).

Really I am just nervous about contacting my mortgage company, who must be told about it (despite things being comparatively informal as a resident landlord when compared to a live-out landlord).

I am worried that they will refuse, or demand I take out a differing mortgage, and am hoping to find some advice on this front.

Many thanks,
John

kingstreet

AFAIK there is no requirement to notify a lender of having lodgers. As long as you continue to be an owner-occupier you will not invalidate or breach your mortgage terms.

Yorkie1

Just responding to one comment from OP: you must have a gas safety certificate, not just should.

getmore4less

3 lodgers, potential CGT liabilities.

Some lenders require notice of paying lodgers

insurance usualy does also.