Informing Mortgage Lender

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    Informing Mortgage Lender

    I have been letting out a property that I used to live in for the last four years, but I have not informed my mortgage lender.The property was originally mortgage free but I remortgaged to purchase another property (I assume this was on a normal residential mortgage).

    I am wanting to let the mortgage company know I am letting the property, will they require me to change the mortgage to a buy to let or will there be any other fees likely?

    Thanks.

    #2
    Fees - most definitely yes.

    Comment


      #3
      They will improse fees, they will probably charge an increased monthly %, and they may add restrictions on how much rent you can charge, how long you can let it without reapplying for permission (with another round of fees), and even who you can let to (no benefits tenants etc).

      By the way, you don't just tell them you are letting, you actually have to ask their permission, so of course, they can also refuse!!!!!

      Are you planning to come clean and tell them you have been letting it in breach of your mortgage terms for all this time?

      As you have overlooked this obligation, have you also complied with all the other legal regs of letting? EPC, GSC, declared tax, changed your insurance, protected the tenant's deposit ....?

      Comment


        #4
        Do the terms of your mortgage actually prohibit letting without consent? (They probably do, but worth checking.)

        Comment


          #5
          Does your landlord insurance become invalid if you haven't informed lender?
          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

          Comment


            #6
            Originally posted by Lawcruncher View Post
            Do the terms of your mortgage actually prohibit letting without consent? (They probably do, but worth checking.)
            Please note this.

            A mortgage company can recall the monies if you have broken a term. It may be wise to contact a Mortgage Broker and re-mortgage to a Buy to Let.

            Originally posted by theartfullodger View Post
            Does your landlord insurance become invalid if you haven't informed lender?
            Only if LL insurance has it as a condition. In addition only if LL insurance company finds out.

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