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Forums > Active > The Netrent Forum
Subject: Mortgage lender's consent

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Author Messages
ctb1963
Posts:2
28 Jan 2007 05:02:39 Alert 
Hello, I came across this site and very much hope some one can help with some advice.

I recenlty purchased a house in another town, with the intention of relocating. Unfortunately, due to unforseen circumstances (my elderly mum had a bad fall, and I now need to care for her) my plans have had to change and I won't now be able to move to new home as intended, at least for a few months. I think I will need to rent out my new home to cover the mortgage, as I really don't want to sell it.

This is all within 10 days of completion. My mortgage is a 5 year fixed-interest residential mortgage with Abbey. If I approached Abbey, what chance is there of them giving me consent to rent out my new home so soon after completion? Are there likely to be big financial penalties to be made to switch to a buy to let mortgage? Or might Abbey just agree give me consent. If you think this is unlikely, how feasible/legal is it to rent my house out without my lender's agreement?

Any advice or information offered will be gratefully recieved. I am in a bit of a pickle, and really don't want to have to sell my lovely new home before I've even lived in it.
Johnson
Posts:23
29 Jan 2007 14:16:20 Alert 
I don't have any direct experience of the Abbey but there should be no reason why they won't work with you to either 'ignore' the fact that you're renting the property out or switch the mortgage to a buy-to-let, The Abbey do BTL mortgages so they have the option within their own lending to help you out. Try and speak to the most senior person you can and explain the situation. Make sure that you get the right insurance in place as well. Good luck with it.
dminkin
Posts:26
29 Jan 2007 16:52:13 Alert 
They should switch it at a small cost but a higher rate.I wouldn't tell them.They wouldn't need to know.How would they find out? Only prob I see is your annual mortgage statement being sent to that address.
Insurance is a must though for change.
Paul Mac
Posts:56
31 Jan 2007 13:27:05 Alert 
I'm not sure I'd tell them but in my opinion you run a risk with Tax and possibly with the insurance. Even if you change it to landlord insurance they may refuse to pay out in the event of a claim if the mortgage is for a residential property rather than a buy to let. Admittedly the risks are rather small but they are there.

As far as the statement going to the address you can always get the Post Office to redirect mail, the sender doesn't know you've done that so they'll be none the wiser
ctb1963
Posts:2
02 Feb 2007 18:17:16 Alert 
Thanks for advice. I think I'll take a gamble and just not tell bank. Fingers crossed....
Paul Mac
Posts:56
05 Feb 2007 05:42:23 Alert 
[quote]Posted By ctb1963 on 02 Feb 2007 18:17:16

Thanks for advice. I think I'll take a gamble and just not tell bank. Fingers crossed....[/quote]

Just make sure that you get the right buildings and contents insurance in place. Be aware that changing your insurance may alert the lender to the fact that the property is now buy to let not residential.
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Forums > Active > The Netrent Forum > Mortgage lender's consent


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