House not selling - renting an option?

bylromarha

Apologies if this is a silly question.

I don't want to ring my mortgage company to ask this as I don't want it going on my file in case it's a negative.

We have a house for sale. It isn't yet sold. We need to move due to a new job.

If we put this house up for rent, would the existing mortgage on this property mean we'd only be able to access a reduced mortgage amount on buying a new property?

Thanks

dancingfairy

You would need either BTL mortgage or Consent to Let from your mortgage provider. Obviously if you rent, then you become a landlord and have a set of responsibsilities. For example you have to have a gas safe certificate, you should carry out an inventory and have to by law protect the deposit, you will obviously need landlords insurance. You will need to carefully vet tenants and take references, you need to know how easy (or not) it is to get tenants out etc etc.
And I doubt you'll be able to borrow as much as they'll take into consideration your current mortgage, oh and I think you need a certain percentage of loan to equity for ctl.
It is not an easy option and being a ruluctant landlord is not recommended, not least because your tenants could move in, refuse to pay rent properly, trash the place and refuse to move out which may result in lengthy and expenseive process to evict them.
df

G_M

If you convert your existing mortgage to a BTL, then your new residential mortgage should be unaffected.

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New Landlords (information for new or prospective landlords)