A quick guide…
If you find yourself in a position where you need to rent out your home to tenants then you have become what we describe in the business as an ‘accidental landlord’.
Many first time landlords are not aware of the fact that if they rent out a property which has an existing residential mortgage attached to it they do need to seek consent for the let from their current mortgage lender.
Depending on the existing mortgage companies policies with regards to letting, there may be a one off fixed fee to pay to obtain the consent or a monthly increase in mortgage repayments. However, there are lenders out there who may approve the Consent to Let without forcing any charges against the applicant.
While obtaining a Consent to Let mortgage can potentially be a little more expensive for the homeowner, the long term potential yield from renting out your existing home will undoubtedly cover these incurred costs.
We understand that it can be tempting to just continue letting out your property on its existing mortgage, to do so may be in breach of your original mortgage conditions and could consequentially lead to your bank or building society to begin a possession process.
Depending on your personal circumstances and the time period in which you are looking to rent out your residence, it may well be worth switching to a Buy to Let mortgaged. Before making any final decisions be sure to take the time to contact a professional and experienced mortgage broker in an effort to find the right mortgage product for you.