Skip to content
  1. Home
  2. The Mortgage Brokers Blog
  3. Q&A; Letting a mortgaged property & consent to let
Print this page

Q&A; Letting a mortgaged property & consent to let

Author: Andy Bedford » Publish Date: 29 October 2009

Question; I intend to move out and let my property with a residential mortgage on it; what should I do, and is this ok?

Firstly, it’s a typical condition of almost all residential mortgage contracts that the property is not to be let without the lender’s consent. So you should always speak to your lender first and see what they say.

Most lenders will be relatively helpful with this; there are numerous reasons people choose to let what was once their home, and it’s a common occurrence.

Some lenders may want to change the mortgage contract to a buy-to-let type; others may change nothing until the current mortgage is out of its initial term.

A lender is unlikely to give you a positive response if you only entered into your mortgage contract very recently. If they did, few people would bother paying the higher interest on a buy-to-let mortgage and would take a residential mortgage and switch it a week later.

You will also need to look at your buildings and contents insurance; it will likely invalidate your policy if you are not the primary occupant.

Tenants are more likely to ruin a property than the owner, so your home insurance may be a little more expensive.

You also need to make sure you comply with all the regulations around being a landlord as regards gas inspections and using a secure tenants deposit scheme to avoid any litigation in the future. You should also investigate if any licensing schemes are applicable with your council.

As usual, if you need further information about this call 0345 4594490 to speak to a mortgage advisor about your circumstances.

Categories
Next posts

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. PLEASE NOTE THAT SOME MORTGAGES SUCH AS COMMERCIAL BUY-TO-LET ARE NOT REGULATED BY THE FCA.

RIGHTMORTGAGEADVICE.CO.UK FCA NO. 500795 IS AN APPOINTED REPRESENTATIVE OF JULIAN HARRIS MORTGAGES LTD FCA NO. 304155, WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

THE FINANCIAL OMBUDSMAN SERVICE (FOS) IS AN AGENCY FOR ARBITRATING ON UNRESOLVED COMPLAINTS BETWEEN REGULATED FIRMS AND THEIR CLIENTS. FULL DETAILS OF THE FOS CAN BE FOUND ON ITS WEBSITE AT WWW.FINANCIAL-OMBUDSMAN.ORG.UK.

THE GUIDANCE AND/OR ADVICE CONTAINED WITHIN THIS WEBSITE IS SUBJECT TO THE UK REGULATORY REGIME, AND IS THEREFORE TARGETED AT CONSUMERS BASED IN THE UK.

© RIGHTMORTGAGEADVICE.CO.UK 2010-2024.

Get advice
Request mortgage advice
close the form
Mortgage enquiry details
Your details
Contact details
Enquiry details
Legal Consent