Thanks both - that is very helpful.

Answers have been given:

- a mortgage is a contract and the terms of the mortgage may dictate whether you may rent out the house or have to ask permission etc.  The terms may state it is for residential purposes.  The reason the lender may object is that there is a higher risk of damage etc to the property if people who do not have an interest in that property live in it.  There may also be a higher interest rate required as a result of this higher risk

- the insurer has to be notifed whether or not the policy explicity says you may not rent it out.  Insurance carries the underlying 'utmost good faith' criteria which means you should inform them of anything that may affect there risk.  They may not be insured should they not inform the insurers of such an arrangement.

- because the lender has an interest in the property, it is their security, they will probably have insisted that there details have been notified to the insurer.  As such, when you notify the insurer of the change of use of the property, they will probably notify the lender as a matter of course.

Having said all the above.  The lender should not act unreasonably and should not block etc. the request to allow the property to be rented.  They will probably do several of the following:

- insist that it is rented under a short hold secured tenancy

- may request that it is professionally managed and may restrict the type of tenants (no students, DSS etc.)

- may insist that you change the type of mortgage you hold (but should not unduely penalise you for this)

- will charge a fee for considering all this.

That should be enough to keep them going.  This is like flying, little chance of it going wrong if you don't tell the lenders etc., but big consequences if it goes wrong.

Hi there..your friend will have to let her mportgage company now for following reasons

1. u have to have buy to let option on mortgage..she prob has residential one (which means u live there)

2.insurance claims may be invalid

3.has to declare for tax reasons..i.e. unearned income..

4.i did the same got told no..had 2 mortgage then 3 months later told them i had to move to second house  for work reasons and they had no choice  but to change 1st to buy to let..

hope this helps

I had a discussion with a friend over the weekend. They are moving, and are considering keeping their present house and letting it out.

I said, well, you will have to let the mortgage company know.

Why? Said my friend.

I didn't know!! Why do you and what happens if you don't? The existing house is in her name; they've lived there together for a while, and now they are moving in together into either his house, which is bigger and no longer occupied by his ex, or a joint one.

Help me to answer my own question!!