Renting property with regular mortgage??


B

Bdb2112

I just bought my first house 6 months ago and have a regular mortgage with the
natwest. Unexpectedly I will be working overseas for about 2 years in the next
couple of months and would like to rent out my house. How are the natwest (or
any lender) likely to respond to me renting out the property? What are the
possible consequences of me not informing them that I am renting the property?
 
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D

Doug Ramage

Bdb2112 said:
I just bought my first house 6 months ago and have a regular mortgage with the
natwest. Unexpectedly I will be working overseas for about 2 years in the next
couple of months and would like to rent out my house. How are the natwest (or
any lender) likely to respond to me renting out the property? What are the
possible consequences of me not informing them that I am renting the
property?

1. Nothing - or might increase the interest rate.

2. Nothing - or make you re-mortgage elsewhere for breaking the T&C, or
increase the interest rate retro-actively.
 
M

Mick

Bdb2112 said:
I just bought my first house 6 months ago and have a regular mortgage with the
natwest. Unexpectedly I will be working overseas for about 2 years in the next
couple of months and would like to rent out my house. How are the natwest (or
any lender) likely to respond to me renting out the property? What are the
possible consequences of me not informing them that I am renting the
property?

This happened to me so I wrote to my lender informing them I had to go and
work abroad (Australia) and gave them my expected return date (4 years), I
assured them it was not a buy to let situation and they left the rate the
same. The worse case they will add at least 1% to the interest rate, but do
make sure you tell them you're leaving, terms and conditions usually say so
and there are possibly situations were you could have problems.
 
1

1keytools david

I just bought my first house 6 months ago and have a regular mortgage with the
natwest. Unexpectedly I will be working overseas for about 2 years in the next
couple of months and would like to rent out my house. How are the natwest (or
any lender) likely to respond to me renting out the property? What are the
possible consequences of me not informing them that I am renting the property?
Possible is that they tell you that you are breaking the t&c and must
repay get a new mortgage.

If you make sure payments are on time it's extremely unlikely they
would ever find out. If they found out, they are unlikely to do
anything unless you miss payments. Basically why should they care if
they get their money.

Your tenant will also have less legal protection against the bank
throwing them out if they have to repossess. Rental agreements usually
require you to notify your mortgage co.

David. 1keytools.

Software author. (please edit my email addr. to prove you're not a dumb 'bot)
Web Log Analyzer by Search Term http://www.1keytools.com/wlabstfeatures.htm
Kybie GetEmAll - Make IE an offline browser http://www.1keytools.com/offline_browser.htm
 
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R

Robin Graham

I addition to the above, your buildings insurer would need to be told that
the occupant is a tenant and not you.

Rob Graham
 

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