GrosAve Posted January 12, 2016 Report Share Posted January 12, 2016 I'm about to let my residential property out and rent a property in Brighton. I'm aware that I need to inform my mortgage company and request permission to let. Does this mean my mortgage interest rate will increase? Mortgage with Santander. many thanks Link to comment Share on other sites More sharing options...
Melboy Posted January 13, 2016 Report Share Posted January 13, 2016 In most cases the answer is yes it will. Residential mortgages are generally cheaper than BTL mortgages BUT you need to be aware that if you hide the fact of the change of conditions your insurance company will not honour any claims you may make. Plenty of examples of that scenario from past years. We had an example of this in my location where a house burnt down by a tenant growing cannibis and the insurance company refused to pay out because the property owner did not inform the insurance company of the change of mortgage circumstances. Insurance companies will always look for a "let out" of payment when it can be proved to be the case. Link to comment Share on other sites More sharing options...
GrosAve Posted January 13, 2016 Author Report Share Posted January 13, 2016 Thanks Melboy. I'm not purchasing another property, I am going into rented myself for at least a year to see if I like the area. Does that still consitute a BTL? Link to comment Share on other sites More sharing options...
Richlist Posted January 13, 2016 Report Share Posted January 13, 2016 No but the previous comments will still apply. If you let your property your interest rate will almost definitely rise. Any lender would be missing a valuable bonus if they didn't apply an increase. Why not telephone and ask them? You definitely don't want to go ahead without telling them. Link to comment Share on other sites More sharing options...
GrosAve Posted January 13, 2016 Author Report Share Posted January 13, 2016 Thanks Richlist. I'll call tomorrow Link to comment Share on other sites More sharing options...
Melboy Posted January 14, 2016 Report Share Posted January 14, 2016 18 hours ago, GrosAve said: Thanks Melboy. I'm not purchasing another property, I am going into rented myself for at least a year to see if I like the area. Does that still consitute a BTL? If you vacate your primary residence which has a residential mortgage charged against it and rent that property out you now are not on a residential mortgage for that property. Somewhere in your mortgage details and contract you took out there will be a clause that states you must inform the mortgage company of any change of your circumstances. Link to comment Share on other sites More sharing options...
GrosAve Posted January 27, 2016 Author Report Share Posted January 27, 2016 Thank yo everyone. I am converting to a Permission to Let Mortgage. Link to comment Share on other sites More sharing options...
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