Telling Your Mortgage Company Your Renting Your House Out

[Bumfluff]

I've just got a standard residential mortgage on my place, if I rent it out could I get away with not telling the mortgage company ? Some people say you don't need to but others say you do. I doubt I will have to remortgage for a fair while as I'm on an offset tracker which doesnt expire.

Is it generally a condition of the type of house insurance you need when letting that you need to prove its a BTL mortgage ? Also what about the letting agents will they want to confirm its on a BTL mortgage ?

[AtW]

Check with your lawyer to ensure what you want to do is not classed as morgage fraud.

[Bagpuss]

I've just got a standard residential mortgage on my place, if I rent it out could I get away with not telling the mortgage company ? Some people say you don't need to but others say you do. I doubt I will have to remortgage for a fair while as I'm on an offset tracker which doesnt expire.

Is it generally a condition of the type of house insurance you need when letting that you need to prove its a BTL mortgage ? Also what about the letting agents will they want to confirm its on a BTL mortgage ?

Most will have a caveat to prevent you from doing this, letting out increases their exposure which is why BTL mortgages are at a higher rate.

[scooterscot]

Was in the same situation a few years back. We told our mortgage provider in the end and they charged us a three figured sum to convert the mortgage (the higher end at that). Nothing changed, no new paper work, nothing. It's clearly a way for the bank to make some extra cash from you.

On the other hand I've slept soundly every night since then.

I'd suspect they'll charge even more now given the economic changes, every penny helps...

You might find that the bank's BTL mortgage has a LTV that does not match your current mortgage -

[Fishface]

...you're going to be away on an assignment for a while right??

then it is courteous to inform your lender they can't force you to BTL cause your away for a while.

I wrote them a letter telling them this and they weren't bothered.

[Bumfluff]

Cheers.

I'm checking out the small print now, saying I'm going on a temp assignment is a good idea, I will try and sweeten them by only needing small mortgage as well, its has an offset facility.

What about renting out rooms would that be classed as buy to let ? I could keep my name on the council tax and keep a room there. I would live there sometimes, renting 3 of the 4 rooms would cover the mortgage.

Thanks

[TykeMerc]

There's some regulation over the divide between renting out rooms to a lodger and renting out the house which would be classed as needing a BTL mortgage, it was discussed on a Radio 4 programme a while back. sorry I don't remember the specific details.

Try a Google on lodger regulations and you might find the exact regulations.

[bobhope]

Depends on the lender. Some will just load the mortgage rate by say 1%

[GCR99]

I've just got a standard residential mortgage on my place, if I rent it out could I get away with not telling the mortgage company ? Some people say you don't need to but others say you do. I doubt I will have to remortgage for a fair while as I'm on an offset tracker which doesnt expire.

Is it generally a condition of the type of house insurance you need when letting that you need to prove its a BTL mortgage ? Also what about the letting agents will they want to confirm its on a BTL mortgage ?

Don't tell them, as long as they get their money every month they dont care.

[DimPrawn]

Don't tell them, as long as they get their money every month they dont care.

But do tell your house and contents insurer!

As long as the mortgage gets paid every month without fail, they'll never know/care.