MortgageSpecialist:If you take option a and do nothing, the chances of the lender finding out are extremely small. But if they do find out, they will either put you on a higher rate or force you to re-mortgage elsewhere, which is what would happen in option b regardless. I would stick with option a, say nothing. You have effectively got nothing to lose.

err...no. If they found out they will either move you to BTL (if they are one of those who will do it, which is very rare), or they will give you 14 - 28 days to repay the entire mortgage (you can of course try to remortgage during this period, but if you cannot complete it within 28 days, then can then declare the loan in default).

It is probably better if you just remortgage it on BTL without telling them if you can, or take the small chance that they may find out and demand the repayment of the entire mortgage.

NatWest can do something similar. They will usually just charge £100 for now but, if you're on a fixed term deal, they will want you to switch at the end of the term.

http://www.natwest.com/personal/mortgages/g4/common-questions.ashx#what_if_i_want_to_rent_out_my_place

If you don't want to phone up to ask the question "what if", you should certainly check the lender's web site to see if there is information there.

I have my mortgage with C&G (it is NOT buy-to-let mortage). I was thinking to move to the different part of England for a year or so and wanted to rent the house out. I went to the C&G office and asked for advice - what could I do in my situation? They said it is not a problem at all, I do not have to change my mortgage to BTL one (which is much more expensive). The only I had to do is to fill out a form called 'LETTING APPLICATION FORM C&G' (they charge £250 or so for this). If the bank accept my application for, then I have rights to let my property out for ONE year.
You could ask your lender, if you have rights to rent your house out and what should you do for this. Or just keep quiet, as most of us do )))
Hope this info helps.

Hello

You're not the only person to have a personal mortgage and rent it out, as long as you pay your mortgage every month on time your mortgage company will have no reason to suspect someone else is living there, the worst thing you could do is 'enquire' to make them suspicious then decide to rent it out as you are

Regards

You are in breach of your mortgage conditions.

Options: You could a) do nothing and continue as normal, or b) tell your lender and they will either force you to re-mortgage elsewhere or put you on a higher rate.

If you take option a and do nothing, the chances of the lender finding out are extremely small. But if they do find out, they will either put you on a higher rate or force you to re-mortgage elsewhere, which is what would happen in option b regardless. I would stick with option a, say nothing. You have effectively got nothing to lose.

Pocky

I come to the same conclusion as Skywalker. If you advised them, you may then find it very difficult to re-mortgage and even if you did manage this, the mortgage payments may be higher. My understanding is that most companies require the oustanding loan to be 60% or less, than the current market value of the property. Also that the mortgage rate charged will be higher and there could also be a fee levied.

Just make sure that the tenants are vetted and that you have suitable Buildings Insurance.

There are thousands of people in your position. Although technically you are in breach of a mortgage condition that you cannot let the propety, the consequence of advising them is worse than any sanctions they could apply. What could they do if they found out after the event?

Huckster

It's very simple - don't tell the Bank! They don't need to know, and you still need to pay the bills. Don't stress - you are not the only person in this position.

One option is to contact the bank and ask what would be the situation if you moved out and let the property.

Last year about this time, I lost my job after having just renewed my mortgage. However, not being able to find a job in the UK, I went overseas and rented my place out. A year later I'm still overseas and it doesn't look like I'll be coming back anytime soon.

Unfortunately, it never occurred to me that this was something I had to tell my bank about. I have since found out that I should have told my bank, although they don't know about it yet. Now I'm worried that if I do tell them, they will withdraw the mortgage as this particular bank doesn't do "buy to let", although this isn't actually what I planned to do.

I do intend to return to the UK at some point, but for now all I can do is rent it out to pay the bills.

Any advice on what I should do? The stress is starting to get to me.