letting a house on mortgage

saff_2

Hi i was wondering if someone can help....i am planning on renting my house, which on a mortgage with halifax. However it is a residential mortgage, do i need to seek authorisation of the lender in order to do so. has anyone else had the same experience. thx

herbiesjp

You should ask for consent to let from your exiting lender, and inform your insurance companies also

draconian_2

Typically if you do not ask the lender and they find out they will possibly fine you by charging you a higher interest rate.
If your circumstances have changed, talk to them, the lender will possibly want to review your letting agreement (they normally charge for this!!), I would recommend you use a letting agent so that your contract is ok and the tenants are vetted.

The insurance compaines tend to let the lender know - for example we took a policy out with Direct Line and they sent notice to the lender. Then I cancelled it (found a better deal within the 21 days cooling off period) and cancelled it. Direct Line told my lender!!! They asked for a new policy doc which showed their name as the financial Interest.
It seems to me they all access 1 database. Big Brudder man!!
Also you should notify the lovely people at the Inland Revenue via your tax return.

Have fun! I hope this helps.

D