Will lender of FTB mortgage allow a property to be rented out?

bargainbarmy

Hi, I'm making this enquiry on behalf of my niece. She recently bought her first house a couple of months ago and has decided to take up a job offer in another part of the country. She still wants to keep her new house and rent it out. Can somebody advise what she should do as regards getting the lender's pemission? Although she has a good job as a dentist she can't convert to a Buy to Let as she doesn't have two year's accounts. Also, I'm not sure, but she may be tied into a fixed rate for two years as well.
What do you think the lender will say and will they increase her interest rate or change her mortgage deal etc? What fees are they likely to incur for renting the house out?

Thanks for you advice everybody!!!

kingstreet

Depends on the lender.

They vary widely, from a small fee, a big fee, a fee and rate increase, or rate increase alone.

She may as well call them and ask, if this is under active consideration.

HappyMJ

Unlikely...but no harm asking. Due to the increase in interest rates and the penalty for leaving a fixed rate deal I would just get a house sitter in for the next 2 years. They'd be responsible for any bills on the property such as gas, electricity, water and council tax but they wouldn't pay you rent and therefore wouldn't be a tenant. You would return to the property on the weekends and on holidays so it's still your residential property (the other property in the work location being your second property) then after 2 years get CTL or a BTL and move out and rent it out on an AST and make the other house your primary place of residence.

bargainbarmy

HappyMJ wrote: »

Unlikely...but no harm asking. Due to the increase in interest rates and the penalty for leaving a fixed rate deal I would just get a house sitter in for the next 2 years. They'd be responsible for any bills on the property such as gas, electricity, water and council tax but they wouldn't pay you rent and therefore wouldn't be a tenant. You would return to the property on the weekends and on holidays so it's still your residential property (the other property in the work location being your second property) then after 2 years get CTL or a BTL and move out and rent it out on an AST and make the other house your primary place of residence.

I'm not sure having a non-paying house sitter would be an option as she would need the income to pay the mortgage. She won't be buying in her new location just renting. Also not sure until i speak to her tonight if she is tied in. She may be on a variable with no restrictions. If so, would they be sympathetic. Surely, lots of people must find themselves in this situation where they have to rent their house out on a resi mortgage.

haras_nosirrah

renting it out after a couple of years is one thing - after a couple of months looks suspiciously like it was to get a btl mortgage without the deposit - while this may not be the case you can see why they may think that

amnblog

who is the lender

holly_hobby

Its not necessarily a no, given her occupation and availability of suitable positions close to home (especially if this has come out of the blue, and gives her a decent payrise or greatly advances her career) ...

As always in such circs, it really is a suck it and see exercise with the lender ..... if they do refuse, please advise her not to let it out without the lenders consent, as the issues surrounding that (breach of t&cs, invalidation of blds ins) can be serious.

Fingers crossed they are willing to accept her request.

Holly x

chanz4

is it help to buy?