Letting my mortgaged home

Mk14:37

If all goes to plan I should soon be leaving these shores for three years and I'm currently planning to let my home while I'm away.

Does anybody know of a mortgage product/provider that would allow me to let the property without switching to buy-to-let?

Alternatively, does anyone have an authoritative view on the drawbacks of letting without permission, and the likelihood of being 'caught'?

xylophone

http://england.shelter.org.uk/get_advice/debt_and_arrears/mortgage_arrears/renting_out_the_property/renting_out_the_home

kingstreet

Mk14:37 wrote: »

If all goes to plan I should soon be leaving these shores for three years and I'm currently planning to let my home while I'm away.

Does anybody know of a mortgage product/provider that would allow me to let the property without switching to buy-to-let?

Alternatively, does anyone have an authoritative view on the drawbacks of letting without permission, and the likelihood of being 'caught'?

So you're expecting to have difficulty obtaining consent to let from your current lender?

Mk14:37

I didn't expect so this time yesterday, kingstreet, but I've Bern thinking of switching to HSBC for a while now, and they told me that they'd only agree to a one-year let, after which I'd have to switch to BTL- which they only offer to Premier business
customers.

kingstreet

In which case, what about your existing lender?

You can't remortgage on a residential basis expecting to get immediate consent to let. Not unless you're a member of the armed forces.

Mk14:37

Will give it a go, but I'm currently on Santander's SVR — so find it vaguely amusing that everyone is up in arms about Halifax raising their SVR as high as 3.99 when the Spanish have been screwing me for 4.3% for two years...!

If it makes a difference, I'll be leaving in July and working for the Diplomatic Service.

kingstreet

Mk14:37 wrote: »

Will give it a go, but I'm currently on Santander's SVR — so find it vaguely amusing that everyone is up in arms about Halifax raising their SVR as high as 3.99 when the Spanish have been screwing me for 4.3% for two years...!

If it makes a difference, I'll be leaving in July and working for the Diplomatic Service.

It's funny you should say that. A&L borrowers absorbed into Santander are looking enviously at you and your 4.24 as they are paying more.

Diplomatic service? I guess it's possible there might be lenders who will accept a CTL request on a recent residential remortgage. Have you tried your union? I'm insured with the Civil Service Insurance Society, so I imagine there's a mortgage service knocking around somewhere.

Thrugelmir

Mk14:37 wrote: »

Alternatively, does anyone have an authoritative view on the drawbacks of letting without permission, and the likelihood of being 'caught'?

Is it worth the risk? Would you drive your car uninsured.

Permanently black marked credit record.

Insurance cover on the property would be void.

My concerns would be more about letting the property profitability and returning to a property in good condition in 3 years time.

Mk14:37

Hadn't considered that it would invalidate the insurance

Yorkie1

There's also the point that you'll need to consider registering with HMRC as a LL who is abroad - otherwise there is a possibility that your Ts would be liable for deducting (income?) tax before paying your rent unless they are paying their rent to an agency here.

Too many loose ends to run the risk.

Bear in mind that if you do change mortgage lender to another residential mortgage, intending to let it out from the outset, that is mortgage fraud.

silvercar

Mk14:37 wrote: »

Hadn't considered that it would invalidate the insurance

The important thing is to have insurance that allows for the property to be tenanted.