Buy to Let Mortgage or Not? - Renting
Discussion
Were are looking in to renting out our property while we go travelling for around 6 months. Currently our mortgage finishes in October.
Can we just go on the BOE rate, and rent out our property, do we have to have a BTL mortgage?
We just thinking at the moment so just gathering up some info..
Thanks
Can we just go on the BOE rate, and rent out our property, do we have to have a BTL mortgage?
We just thinking at the moment so just gathering up some info..
Thanks
You are supposed to tell your lender. Some will charge you a fee to give their permission(!) and can increase the rate you pay, but no need to change to a buy to let unless its cheaper, which is very unlikely and means you will still be on a buy to let when you get back.
MOST important thing is to tell the buildings insurance people or you most probably won't be covered....
MOST important thing is to tell the buildings insurance people or you most probably won't be covered....
Barton said:
You are supposed to tell your lender. Some will charge you a fee to give their permission(!) and can increase the rate you pay, but no need to change to a buy to let unless its cheaper, which is very unlikely and means you will still be on a buy to let when you get back.
MOST important thing is to tell the buildings insurance people or you most probably won't be covered....
Thanks!!MOST important thing is to tell the buildings insurance people or you most probably won't be covered....
Barton said:
You are supposed to tell your lender. Some will charge you a fee to give their permission(!) and can increase the rate you pay, but no need to change to a buy to let unless its cheaper, which is very unlikely and means you will still be on a buy to let when you get back.
MOST important thing is to tell the buildings insurance people or you most probably won't be covered....
Agree, and some might tell you to find another lender.MOST important thing is to tell the buildings insurance people or you most probably won't be covered....
Oh, and the nice people at HMRC have said that one of their targets over the next couple of years is landlords who don't declare their rental income, seeing as you will be out the country, and not earning, by the time you've offset the income and the mortgage interest, it wont cost you much, if anything, but bear it in mind.
As a tenant, it's one of the questions I always ask these days. A former landlord of mine stopped paying the mortgage, first I knew of it was letter about the possession proceedings at the local court. Found out then that if the landlord hasn't declared it to the lender and it gets repossessed, the tenants are pretty much stuffed (their AST is void) and can be told to get out on no notice by the lender.
I find it incredible that most letting agencies require reams of paperwork to vet their prospective tenants but fail to do the most basic of checks on the landlords.
You don't necessarily need to switch to a BTL mortgage, but the lender does need to be informed (as do your insurers) and they may charge a fee or change your rate.
I find it incredible that most letting agencies require reams of paperwork to vet their prospective tenants but fail to do the most basic of checks on the landlords.
You don't necessarily need to switch to a BTL mortgage, but the lender does need to be informed (as do your insurers) and they may charge a fee or change your rate.
Barton said:
Oh and have a good time!
Has to be said that many people do not tell their lender and so do not have to pay a fee or a higher rate.........
Well thats breaking their T&C's and they could call in the mortgage straight away.Has to be said that many people do not tell their lender and so do not have to pay a fee or a higher rate.........
Also as you will have to inform the council, your buildings insurance & ltd liability ins & you r Self assessment form I'd be very worried about even considering such a move.
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