j19fmm

Hi people, our house is just not selling, dropped it ridiculous amount and now considering renting it out instead. We have a cut off date for our arrival in NZ.
Will I have to take a whole new mortgage? Is it likely I'll get one?
I know it's all relative, but would welcome your input and experiences.
I thank you

ellenarosemary

No just carry on with the one you are with, if you are going to rent it out you should tell them (or not if you dont want to - I doubt they would find out if you didnt).

Get an agent to run it for you, shop around their rates vary considerably plus what they offer with regard to checking up, references, etc etc.

Also if you need insurance, make sure to change it to a landlords insurance as your other one will be invalid once you leave and have tennants in.

Our house fell through with a week to go, been rented out for nearly 6 months to the tennants from hell, who complained about everything, but surprisingly they want to rent it for another year!!!. We have decided to do this as the housing market is just crap at the moment and dont think it will improve any time soon. Also according to our agent, the house is spotless, so we think its probably best to try and keep them if they are looking after the place, even though they are a pain.

Make sure you get your post redirected for at least a year (not cheap) but helps.

janiejones

Check the small print on your mortgage, it may be a legal requirement to tell them. We had to switch ours, we moved to Post Office mortgages. They didn't charge heaps more than their residential products, and it went through pretty smoothly. Any costs that you incur as a result of becoming a landlord can be claimed against your UK taxes.

We used an insurance broker toget insurance, as many insurers want you to be UK resident. I think they were called C & C, I posted about them here, so post stalk me for their details.

LittleMonkey

Hi,

We just contacted our current mortgage suppliers for permission and got landlords insurance. We are using an agent and - touch wood - all going smoothly. In fact most of the time we forget all about it!!

j19fmm

Thank you all for your answers, but fingers and toes crossed we won't need it as accepted an offer to day...from a kiwi!!!

Engel

First, you will probably find somewhere in the small print that you have to inform you current mortgage lender of any changes, i.e. you are going to rent.

Second, have a good think about using an agent to manage the property. I checked out 3 in my area. All gave similar services. By going for a managed service you can sellect options such as guaranteed income or they they will arrange plumers etc. They take a cut about 10-12.5%, but this can be worth it for peace of mind. Also, they maybe able to give you advice about mortgage and insurance. It is their interest to help with these to reel you in for a regular cut of your rental. Mind had a financial adviser who found me a cheaper mortgage than I had from the high street and a specialist landlords insurance. Of couse they take a chunk of my rent, but I get a nice lump in my UK account each month.

Also, make sure you talk to the local tax office. If you explain your situation, you can avoid a nasty tax build for undeclared income.

Good luck.

GoingIn2011

You have to tell them. No "may" about it...

jmh

I'm with Nationwide - I rang them and asked and they said fine, but they would start charging me an extra 1%. My mortgage is very low so it may be different if your is high. Insurance is more important. You need to be careful that you meet all their requirements. I found a really good broker who helped me out when my tenant ended up on benefits and wasn't covered by my current insurer. Happy to pass on the details.

I've got an agent who seems to be doing their job properly. Happy to pass on their details too - they are in RB Kingston.