not telling your mortgage company your renting?

ok so i am now some what annoyed that on the day of signing contracts my buyer pulls out and i stand to lose all that has been payed on my new property searches, solicitors etc.
We have decided to go ahead with the purchase keeping our house on the market untill it sells or we decide to rent it out.
 
The problem is there is no equity in the house so i cant get a buy to let with another lender as i dont have the 25% deposit in cash or equity.
 
should i just rent it out on my current mortgage rate keeping it hush hush and hope for the best?

What you are thinking of doing is not illegal, it just depends on the terms and conditions of your mortgage. Some lenders may make you change to a buy to let mortgage with a slightly higher interest rate.

yes but my argument is im not buying to let as ive already bough it 5 years ago so why should i have to pay an additional £100 a month to rent it out, idealy im hoping they will say its not a problem but i just know they are gonna hit me with fees etc thats why im not sure if i should risk it and rent it out with out them knowing

didless


ok so i am now some what annoyed that on the day of signing contracts my buyer pulls out and i stand to lose all that has been payed on my new property searches, solicitors etc.
We have decided to go ahead with the purchase keeping our house on the market untill it sells or we decide to rent it out.

The problem is there is no equity in the house so i cant get a buy to let with another lender as i dont have the 25% deposit in cash or equity.

should i just rent it out on my current mortgage rate keeping it hush hush and hope for the best?

Yep! Only problem is if the tenants burned it to the ground your insurance may not cover it.

didless


yes but my argument is im not buying to let as ive already bough it 5 years ago so why should i have to pay an additional £100 a month to rent it out, idealy im hoping they will say its not a problem but i just know they are gonna hit me with fees etc thats why im not sure if i should risk it and rent it out with out them knowing

They won't know anything about you renting it out. You just keep paying the mortgage. I sold a buy to let property with the tenants in, to a buyer who was getting it with a regular mortgage and keeping the tenants. The issue is his insurance wont pay out should something big happen, if it's only supposed to be him living in it.

It's a big risk as Whitesnake said...
 
I moved to the US in 2001 and rented my house out and even though i changed my insurance... The tenants moved out and about 6 weeks later someone broke in and did 10,000 worth of damage...
 
Insurance company said I was covered for the breakin, but as the house was vacant for 30+ days i was not covered for vandalism and would not pay out!!!

i don't take my insurance out with the mortgage provider so if i took building insurance out with a company it would be ok? or would the insurance company need to see my mortgage provider has given me permission to rent it out?

I have been doing this for 3 years with my house in N. Ireland, its unlikely you'll get found out but as said above your home insurance likely won'y cover it.
 
If I was you I would go ahead, use an agency to vet clients and check on the house regulary

didless


i don't take my insurance out with the mortgage provider so if i took building insurance out with a company it would be ok? or would the insurance company need to see my mortgage provider has given me permission to rent it out?

 
yes and like any insurance they will use any small print to not pay out.

RobW


It's a big risk as Whitesnake said...

I moved to the US in 2001 and rented my house out and even though i changed my insurance... The tenants moved out and about 6 weeks later someone broke in and did 10,000 worth of damage...

Insurance company said I was covered for the breakin, but as the house was vacant for 30+ days i was not covered for vandalism and would not pay out!!!

Most rental agreements say the tenant has to inform the landlord if they are away from the property for 30 days or more. Now I know the reason why!

didless


i don't take my insurance out with the mortgage provider so if i took building insurance out with a company it would be ok? or would the insurance company need to see my mortgage provider has given me permission to rent it out?

If you're going to rent out your existing house and assuming you've already got buildings insurance on it then they too wouldn't know you were renting it out. But it would come out in the wash should you need to put in a big claim and you'd get nothing. If you do advise them that you intend to let it out then yes, as mentioned, they would want to see that you have the appropriate mortgage/permission to let out.

Most mortgages allow you six months of rent before you have to change to a buy to let

Loads of odd comments in here. But yeah just rent it out, get a landlords insurance policy and no you dont need to prove to a landlords policy that you have a BTL mortgage

swordfish


Most mortgages allow you six months of rent before you have to change to a buy to let

 
Really?

i had a residential mortgage on my flat and we said we were living in it to intially get it, in order to let it out we had to ask in writing to the mortgage provider for permission to let it out, the replied saying its fine.
 
I wouldnt do it any other way personally, because im cautious maybe a little too cautious

Red Bull


Loads of odd comments in here. But yeah just rent it out, get a landlords insurance policy and no you dont need to prove to a landlords policy that you have a BTL mortgage

 
As usual with these kind of things, agree 100% with Red Bull. Keep your mortgage, take out a new Landlords B&C Insurance policy and you're sorted.
 
Even if somehow in the one in a million chance your mortgage company find out in the future, worst case scenario, they make you change it to a buy2let mortgage then. They're not gunna back date additional interest or anything crazy like that.

I'm being made homeless cus of the stupid bitch that I rented from lied to her mortgage company to keep her fixed rate, now they have found out my home is being sold (she is selling so dont go on variable), someone came round today and seems interested, **** knows what I'm going to do, got my 11 year old living with me and cant get a guarantor, nothing in the paper and sick to death of moving, from 07 to 10 I moved 6 times... Really fuc'ed off with it
 

has your landlord given you your notice?
they can't make you sell your property at worst they can withdraw the mortgage and you have to find another lender.
 
It would be interesting to know how they found out i bet she has defaulted on a payment its the only was a lender starts taking an interest surley is if you miss a payment 

Sometimes what happens is you rent the house out and the tennant receives some post from their landlords bank, a statement or whatever. The tennant receives it and doesnt put two and two together and gives it back to the postman saying no one lives here by that name. As you can imagine if they've had a few different tennants then there would be a few different names being posted through the door each day. Sounds stupid doesnt it, but it happens

didless


has your landlord given you your notice?
they can't make you sell your property at worst they can withdraw the mortgage and you have to find another lender.

It would be interesting to know how they found out i bet she has defaulted on a payment its the only was a lender starts taking an interest surley is if you miss a payment 

Not had any notice, but people looking at the house and will get 4 weeks notice if they sell (mind u it takes longer than that to sell a house) I'm just pisssed I've got to move and broke, reckon she's telling lies also as she moved into her boyfriends and rented the house to me and now comes up with this story about how the mortgage company found out, but I think its just an excuse and all part of her plan, test the waters living with her boyfriend and then sell her house if all sweet.