First time buyer and renting the house after 6 months

HNHN

My friend bought a flat, then 6 months later, he moved to another country for a new job and got a CtL very easily from the lender. His flat is now let out without any problems. 

[Deleted User]

BFYZ said:

Thanks everyone for all the input and appreciate it and I think it would be better if I house my extended family or relatives and stay back and forth in property and not change the address at all. At least it would bring some income but not at a market rate but nevertheless I can take possession whenever I want and do not have to rely on outside factors which are not in my control. 

On the hindsight, how would the lender find out if it’s been rented and we are on residential mortgage. Apart from the obvious returned mail from the address or someone reporting it. 

Just because you let to family doesn’t mean you can take back possession whenever you like nor does it absolve you of your legal responsibilities as a landlord. 

Lenders cross reference data with other agencies to spot people who have potentially let property on a residential mortgage. It also takes one !!!!!! off tenant to report you to the lender after a bit of light digging. 

cymruchris

The whole scenario could quickly become a nightmare. I would sell the house, pay off the mortgage, bank any remaining cash, make the move, and enjoy life. If there's a need to come back, rent, get established for a few months, buy again. I spent 6 years overseas, and had a property in London that I let out. It was a constant headache.

The tenants kept 'breaking things' like kitchen taps - but claimed it as wear and tear - the fridge broke down (although it was relatively new) - the bathroom developed a leak that led to the floor almost collapsing into the flat below - the rent wasn't always paid on time - the managing agents couldn't manage to fill a glass with water - and when it came to me wanting them to vacate (pre-covid) I had to issue court-proceedings which they kindly ignored.

I also previously had another property where the damage caused was way in excess of the deposit taken, plus a couple of months of non-payment, and then did a runner and were untraceable. It could give you many more problems than you want to deal with if you're settling into a new home overseas.

lookstraightahead

It's even less likely that your lender will let you rent your property out to extended family.

BFYZ

HSBC has been super easy and gave CTL over the phone. No questions asked and nothing changed in terms of interest rate or admin. 6 months into mortgage as first time buyer on 5 year fix and given 24 months CTL.