renting - and telling mortgage lenders?
 

Hi all,

Having failed:frown: to sell our house, we now need to rent it. We have a friend who wants to rent it and all seems to be going ok on that front BUT our mortgage lenders are being really @rsy. They don't do a buy to let mortgage, and although theoretically could approve a private arrangement, are currently keeping us on tenterhooks about whether they will say yay or nay.

We only owe about 1/3 of the house as a mortgage, so plenty of equity, but they are now asking us whether we have permanent contratcs or fixed term ones (I managed to ferret out from them during 1 phone converstaion that they look more kindly upon a year arrangement). So - do we lie and say fixed term - be (more!) honest and say permanent but only going to stay a year (less honest!:rolleyes:) or just not tell them we're going ahead with renting at all!!!

I know we need to take out a special house insurance, and we plan to take out insurance to cover any unpaid rent too. If we cancel our mortgage (ends june) we owe a penalty fee:banghead:

Any ideas???:blink:

Re: renting - and telling mortgage lenders?
 

Hi

We are thinking of doing the same thing. We havnt sold the house, have just got permanent residency and youngest daughter starts year 12 at school in Auckland on 3rd Feb! Hubby is coming over in about 4 months, but we are considering renting the house out and maybe not telling the mortgage people.

Best wishes, Lindsay

Re: renting - and telling mortgage lenders?
 

Be careful on the tennancy agreement you get, you could end up with a tennant you cant get out of your property

Re: renting - and telling mortgage lenders?
 

We thought about doing this when we couldn't sell - we approached our mortage company - standard life - and would have had no problems, we wouldn't have had to change the mortgage even. So it's probably worth asking. We decided it was too much hassle and dropped the house price in order to sell especially as the rent wouldn't have covered the mortage/costs.

Good luck. We haven't been here long but we love it and the kids have settled really well into school.

Re: renting - and telling mortgage lenders?
 

be very sure if the tennant moves out that you can pay the uk mortgage on an NZ dollar income!

how much would you loose if you sold it at below market rate? you have a third to play with why not drop the price halfway between that amount for a quick sale?

sure you loose money but a house there and one here? what if you get here hate it then go back where do you live? to many loose ends for me but thats me.

good luck

george

Re: renting - and telling mortgage lenders?
 

We couldn't sell our house and started to look into renting; our mortgage lender doesn't do buy to let mortgages either and had to give permission for us to rent out our house. They too look more favourably on a term contract; I was told that we could rent our house as long as we planned to come back to the UK. BUT, they never asked us how long we planned to be away, or when we thought we might return.
I feel as if I have been kind of honest (my initial contract here was a term one of 2 years with a view to permanance) and after all, we may decide we want to go home after a couple of years. But if not, we'll sell the house, they'll have all their money back and everyone will be happy.

Re: renting - and telling mortgage lenders?
 

My apartment back in the UK is rented, I had no problems with my mortgage company, didn't have to change anything (it's not a buy-to-let situation anyway). They didn't ask how long I was going to be away for, whether I was going to buy another house or anything. But I am renting through an agency, they probably prefer this as you have no danger (OK a lot less danger) of someone refusing to budge, plus much less chance of big gaps between tenancies.
My rental income only just covers my mortgage plus endowments etc with a small excess so it's not like they had the security of me making a huge profit.

Re: renting - and telling mortgage lenders?
 

We rent our flat out in the UK. Our mortgage is with Nationwide and they gave us permission to let for 3 years but no longer. If we want to let it after three years we will have to change mortgage companies as Nationwide do not do buy-to-let mortgages.:thumbdown:

Best to tell your mortgage company from the start, you could be facing large costs if they find you have rented your property out without telling them :blink: