Buying as a residential then letting it out

rocky12345

Hello all,
I currently work for a major bank and they are offering a very good interest rate, BBR to be precise, they are even offering this on a interest only basis. I am a FTB and the deal is on the basis it is for a residential property only, however, I am secretly planning to let the property as say a month or so after completion, I am currently living with my parents at the moment and I think this could be a good opportunity to bag at least £250 / 300 PCM for 2 or 3 years to save up for a even bigger deposit.



I was wondering if I were to get the property insured, would the insurance company need permission from the lender for the property to be let? and if so, would the lender allow me to do this and on the same rate? Are there any other implications? I was wondering perhaps I could tell them I can’t afford to live in it anymore and then stay at home with my parents; I am really just toying with the idea at the moment.

Kind Regards

Simon_gloster

You cannot let out formally within 6 months of ownership.

Once you get consent, they transfer you onto a normal rate.

Should you let and not tell them and not change insurance to landlord, thats up to you. Someone will tell you the bads on that.

Let it out, not tell the lender but you change insurance, the insurer will notify the lender. Youll be mad not to have the correct protection.

There is also many tax implications of which can get very nasty if not adhered to. If you change address your employer will know etc. Too many traps to get caught.

As you say your toying with it, keep playing with the toy, you'll sleep better for it.

GMS

Surely a wind up.

Simon_gloster

I did wonder after I got sucked in.

OP, yes go ahead its fine and whilst your at it pass me Survivors greatest hits.

holly_hobby

Breach of mge terms, invalidation of blds ins - lender demands immediate redemption .... and you probably lose your job for gross mis-conduct (given as this is a staff mge).

Shall I go on .... ?

Seriously this is an awful idea, and full of pot holes ...

Hope this helps

H x

Thrugelmir

rocky12345 wrote: »

I currently work for a major bank

And wish to continue to do so?