I can't rent my house- can I? Any advice please!!

Shadowdancing

I bought my first house using help to buy one year ago. I got a mortgage at a reasonable rate over 32 years which meant I could afford the monthly repayments.
All was well until my health deteriorated and I had to leave my job for a much lower paying role (I love my new job though and it should lead on to much better pay in 12 months time). Coincidentally my boyfriend suffered an injury around the same time which meant I had to stay with him to help him for a while. We got on really well and decided to move in together. The idea was that I move in with him and rent out my house to make up the deficit in wages.
Unfortunately I had forgotten the Help to Buy element, or didn’t attribute it enough importance. Now from all the documents I can find, I am unable to rent out the house because I used this to acquire it?
The other concern is my mortgage which expressly states that I must not rent the house without first obtaining permission from the provider- Halifax. My colleague, who rents a few properties, says that if I tell them I plan to rent I will most likely have to change to a buy to let mortgage which will be higher interest and will of course be more expensive… so pretty much negating any benefit I would have got from renting the house in the first place.
Obviously as my income is lowered I cannot afford such things as early repayment fees on the loans involved, nor can I cover a drastically increased interest rate on a mortgage. My boyfriend is confident there must be a way around this, and even suggested renting without letting anyone know…
I have refused to consider this, the money my father left me is in that house and I have too much to risk were it all to go wrong. The penalties my mortgage provider could impose if I were to be found renting without telling them in advance are scary to say the least- they’re laid out in the booklet I have.
Any thoughts- anywhere I may have got the wrong end of the stick? At the moment I’m thinking we may have to switch around and move into mine instead… I know we won’t be AS well off but I have some savings to use plus am a savvy borrower with 0% cards etc thanks to this site and I am sure I can manage.

lovehackney

You could always sell the house?

Pixie5740

If it's the Help to Buy Equity Loan scheme that you used then no you can't let out the property unless you can repay the loan in full first. In exceptional circumstances consent to let might be granted so you'd need to check if your circumstances are exceptional enough. You would also need consent to let from Halifax.

If it is the equity loan you have then even if you do let the property then how do you plan on repaying the loan at the end of the 5 years? It might be better just to cut your losses and sell up now. Alternatively your boyfriend could move in with you and he could let his property out providing he can get the necessary permissions.

If you cannot afford to cover void periods or rent arrears then you cannot afford to be a landlord.

agrinnall

It's pretty clear in both Help to Buy schemes (equity loan and mortgage guarantee) that you cannot let the property, or own another. Unless you can repay the HtB element then whether Halifax will give you Consent to Let is irrelevant. I think selling or staying put are your only options.

Shadowdancing

No that's fine, that's what I was thinking. Definitely need to move into my house and do something with his if that's the route we go down. Thanks all. Rather not sell as wouldn't be able to get the help to put a foot on the property ladder through the same scheme again would I?

freeisgood

You could rent a room out tax free, if you have a spare one.

MARTYM8`

You do wonder how much of this will be enforced in practice by the Government.

Apparently if you buy a second home for example you must repay your help to buy loan.