Lender won't let me rent...Help!!

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  • Lender won't let me rent...Help!!

    Hi Guys,

    Got a bit of a dilemma, I want to rent out my current residence and have 1 year left on my fixed term. However the lender wants to charge me an early repayment fee of £2500 to switch to a buy to let!

    What should I do, I know it's illegal to not tell them and rent it out but surely they wont bat an eyelid if the mortgage is paid on time?? (P.S I am not condoning this).

    Any suggestions?

  • #2
    Originally posted by jai View Post
    Hi Guys,

    Got a bit of a dilemma, I want to rent out my current residence and have 1 year left on my fixed term. However the lender wants to charge me an early repayment fee of £2500 to switch to a buy to let!

    What should I do, I know it's illegal to not tell them and rent it out but surely they wont bat an eyelid if the mortgage is paid on time?? (P.S I am not condoning this).

    Any suggestions?
    Try complaint to:
    i. Bank's customer relations officer; failing which
    ii. OFT.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


    • #3
      Originally posted by jeffrey View Post
      Try complaint to:
      i. Bank's customer relations officer; failing which
      ii. OFT.
      mmmm i dont have enough fingers, toes, etc to count how many of my clients dont inform their lenders they are letting their property out.......

      just ensure you let your insurance company know - providing they are not tied to the lender should not be an issue.

      Comment


      • #4
        I can't fault jeffrey's advice BUT: If you follow his suggestion, then your mortgage lender may well start taking an interest in your activities until the months of the OFT/Ombudsman's investigations are complete. During this time it would be very unwise to rent the property out. If you just rented it out and did nothing else, it is very unlikely that your mortgage lender would turn a hair provided that your repayments continued to be made on time. It is, after all, only for a year. If they DID find out, what are they going to do?
        The worst they can do is to insist that you redeem the mortgage, in which case you can insist that they waive their unreasonable early redemption fee and at which time they can also be threatened with the ombudsman or the OFT. Now while the shennanigans are going on, you can continue to collect your rent! With a bit of luck, these investigations will go on for a year by which time you will be able to repay your mortgage completely anyway, so they will just have wasted everybody's time to no benefit to themselves, just trying to enforce their stupid rules!

        P.P.
        Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

        Comment


        • #5
          Thanks guys thats very comforting knowing that I have a few courses of action.

          Regards

          Jai

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