In the first instance if you have a residential mortgage and you are looking to rent your property you should talk to your mortgage lender.
There is no excuse for an ‘accidental landlord’ and you must advise your mortgage lender of your intentions to let. Only your particular lender will be able to give you all the facts that apply to your mortgage.
Some top TPP tips are as follows:
Lenders are cracking down on borrows who are not upfront about their intentions.
Don’t risk being in breach of your residential mortgage conditions and ensure you contact your lender to let them know of your intentions to let your property.
Some residential mortgages do not allow you to let your property whilst other require you to make an application for consent to let, this is a known as a consent to lease. Check your residential mortgage conditions.
Other conditions from your lender may be that you must live in the property for a minimum of 6 months before you can apply for a buy to let mortgage.
Anticipate many questions that your lender may ask, e.g., why are you moving, where to and why aren’t you going to sell your property. You will be expected to have a genuine reason for letting your property. Be ready to explain how you will finance the void periods or non-paying tenants so you may need to show that you have relevant savings in place.
In any event be honest.
When you take out a buy to let mortgage the rates typically are higher as the risks are considered to be higher.
Remember that not every lender is the same and therefore you must check the individual conditions that apply to your lender.
When you are granted a consent to let be sure to look at the conditions and check on any fees or implications.