Does letting my property affect my mortgage?

Jamie79

Hi,

I'm looking for some advice. I have recently moved to London, but still own my flat in Glasgow. I am looking to let it out, but am unsure of the stance mortgage lenders take on this. Can I do this with a standard mortgage, or would I need to change to a buy-to-let mortgage?

Thanks
Jamie

The_Economist

If you let it without telling your mortgage company you could be in breach off contract, which could cause you problems.

Markyt

Ask your lender for consent to let. Natwest recently did it for us with my girlfriends house.

sarkin

Yes speak to your lender also need to check your buildings insurance is valid, as you no longer live at the property.

owitemisermusa

Not necessarily a BTL mortgage. Ask for consent or permission to let your property.
If you can get it then all's good. As for what exactly constitutes a consent to let, depends on the lender. Some keep you on your residential mortgage and ask for a fee, others may change your rate slightly etc.

Until you ask you never know. All I can say is, you'll feel so much better if you have permission than if you didn't.

Cazza

Most lenders will be fine with you doing this, it's rare they make you go onto a different interest rate. Most will charge and "admin fee", but getting permission is definitely the best way to do it; this things have a habit of coming back to bite you!

When your existing deal comes to an end, you may need to look at a buy to let mortgage then, unless you switch to another rate with the same lender, or you have no other residential mortgage. If it's the second situation, some lenders may let you have a residential interest rate, still with permission to rent out.