Redundancy problem

[doglover0121]

Redundancy problem
Is it legal to rent out my home whilst still paying the mortgage without informing the mortgage provider. What are the repercussions if they discover that I have tenants.

[Pigletion]

I think it's less about the mortgage provider and more about the tax man, as you'll need to pay tax on the income.

There are also legalities associated with becoming a landlord and the welfare of your tenants (boiler checks, fire alarms etc.). Also change of use. Probably insurance issues too. http://www.direct.gov.uk/en/HomeAndCommunity/B uyingAndSellingYourHome/LettingYourHome/index. htm

I'd ask the CItizens Advice Bureau, they offer free, confidential advice. At least then you'll know what you're meant to be doing, even if you're not doing it!

[redcrx]

why not ask the mortgage provider, they dont always charge you extra for letting it out.

Im not sure but if you broke the contract by letting, could they call in the debt?

[baileybird]

you really do need to speak to your mortgage provider - i have worked for several and they really don't care for this if you do not get permission. It normally states clearly in your mortgage agreement that you need their permission to rent and they are within their rights to call in the mortgage if you do this. They may let you switch to a buy to let mortgage if you have enough equity in the property or they may just agree to you doing this on your existing arrangement but DO speak to them. It affects a lot of things including your insurance and never ever rely on your rent to pay your mortgage as if your tenants choose not to pay there is not a lot you can do for the first 6 months and then you have no house and no payments.