Residential morgage: Renting out house for fixed limited time?

andre_xs

Hi,
we've bought a house 2.5 years ago (FTB), financed by a 5-year fixed-term morgage from The West Brom. I may have to move for a period of max 2 years because of job. We'd just like to rent something during this time and then return to our current house. To help with finances, we'd like to rent out the current house for this time-limited period (max 2 years). We were just wondering whether this is usually fine with mortgage lenders (we've contacted them but haven't heard back yet), and is it a big hassle to rent out a house?

Edit: Because the job-wise move might be only in a good year or so, the renting out might fall into the renewal period of the mortgage, if that's an issue as well (it might not, maybe we'll be away only for a year or so).

andre_xs

I've just heard back from them: They offer "Consent to let" based on an individual case-wise application. Because everything is still so open at the current moment, I didn't go throught the process yet. She wasn't able to give me much information, because it all would depend on the individual case, but she could confirm that the mortgage interest rate stays as it is, and that a successful consent-to-let application costs £100 in fees.

Sea_Shell

Even if you are able to do this... what's your plan B if the tenant refuses to leave when their time's up!!

andre_xs

Hmm, you mean even if they have a fixed-term contract and just don't move out? Eviction? I have no experience with that stuff...

Pixie5740

And when is the tenant's time up exactly?

Read G_M's New Landlords: advice, information & links taken from his Tenancies in England/Wales: Guides for Landlords and Tenants

andre_xs

Thanks for the good advice!

Another question which came up: I've read that the mortgage will reduce the amount of tax needed to be paid on the rental income (phased over to a tax benefit scheme until 2020 or so). However, all information so far referred to BTL morgages. But we'd have a standard residential mortgage with a CTL agreement. Do the same tax reliefs hold?

dimbo61

Yes you can claim the Interest only part of the mortgage against your profit from renting ( after 2020 you will get a tax refund of 20% )