Renting out my house while mortgaged

muppetscotland

We want to rent a house in the countryside to try out the lifestyle before comitting lock and stock and barrel. That would entail renting out our current house as we may wish to move back in a year or two (or not!).

Our existing mortgage is with Skipton and we have lots of debts and bad credit so remortgaging is not an option.

How likely are Skipton to allow us to let the house and what penalties might be charged?

With thanks

G_M

No experience o Skipton, but BSs tend to be more flexible than banks.

Does no harm to ask!

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agrinnall

I hope you have lots of ready cash then because LLs are not going to be interested in renting the house in the country to you unless you can pay up front.

muppetscotland

agrinnall wrote: »

I hope you have lots of ready cash then because LLs are not going to be interested in renting the house in the country to you unless you can pay up front.

Not sure I understand this? Why would we have to pay any more than anyone else?

marliepanda

muppetscotland wrote: »

Not sure I understand this? Why would we have to pay any more than anyone else?

Bad credit and debts could possibly lead to you failing a credit check for rental, which may require up front rent.

Not a certainty, but a possibility.

Thrugelmir

Ring your lender up and ask for the fees are and whether there's an interest loading.

agrinnall

muppetscotland wrote: »

Not sure I understand this? Why would we have to pay any more than anyone else?

You probably wouldn't be paying any more, but with your poor credit situation there's a very good chance that LLs will not allow you to pay by the month, so your only options would be to pay at least 6 months in advance or get a guarantor who will pay the rent if you default.

davidmcn

Even if you can satisfy a landlord, do you have enough of a safety margin to cover both rent and mortgage if you have a void or a defaulting tenant in your let property?

boxrick

I am with Skipton on a property, they charged an extra 1% on the standard mortgage and charged me £100 for the privilege.

[Deleted User]

Maybe sorting out your finances would be a good idea before taking on more expenditure (rent) and not knowing if renting out the property you own will cover your expenses.

Or selling the property you are living in right now if you no longer want to live there and have too many outgoings to balance the books.

Try the Debt Free board to look at your monthly budget.