Can't get consent to let from Yorkshire bank

Patrickc1985

I bought my first house six months ago with full intent to make it my home for the next few years. Since buying the house I met my current partner who also owns a house. The plan was to move into her house and rent mine out. However my mortgage is with Yorkshire bank who do not give consent to let. I only have 90% LTV so cannot switch to buy to let. The early repayment charge is a whopping £8k, which I would obviously like to avoid!

The options seem to be:

1. let the house out without the permission of my lender, constantly be on edge that the lenders find out and risk invalidating my insurance.

2. Call Yorkshire bank, explain my circumstances and ask for advice, running the risk of raising the alarm and putting a black mark next to my name

3. Keep paying my mortgage on an empty house with two sets of council tax, tv licence, utility bills etc etc.

It seems to me to be an impossible situation to which I cannot find a solution.

Please help!!

Thrugelmir

Sell the property. You'll encounter short term pain but in the longer term recoup the money it'll cost you.

Letting carries far more risk than just the lender finding out or the insurance being invalidated. As you'll be running a business and all that goes with it.

Ms_Chocaholic

Can she not move into yours?

worried_jim

Just rent it out like everyone else.

ACG

Those are pretty much your options.

Patrickc1985

Do you know what the penalties are likely to be if my lender finds out? Are they just financial or does it amount to fraud? Will it effect my credit rating etc?

justjohn

just rent it...What you mean "constantly be on edge that the lenders find out and risk invalidating my insurance."


if you are talking about building insurance, just get landlord insurance

Thrugelmir

justjohn wrote: »

if you are talking about building insurance, just get landlord insurance

Failure to disclose material facts can invalidate the insurance cover in the event of a claim.

stator

Patrickc1985 wrote: »

3. Keep paying my mortgage on an empty house with two sets of council tax, tv licence, utility bills etc etc.

Given your relationship is still quite new I would keep the house for now but mothball it.
You don't need a TV Licence for an empty house. Get the utilities disconnected. See if your council has an empty home discount.

You haven't said how long your mortgage fix is for? When does the ERC expire?

Patrickc1985

By not having consent, that would invalidate my insurance even if it's landlord insurance

Patrickc1985

Mortgage is fixed for 3 years, is there anyway I can switch to a new provider?