What are the likely actions a Bank will take if you have a Residential Mortgage?

[danielsmith89]

Recently I sent a letter to the lenders of my property advising them that I would like my correspondence address changed to another address in the UK as I am going to work in another country for a year.

They responded with a letter advising that they would not be changing my correspondence address because they believe I have let out my property and that under the terms of my residential mortgage I am not allowed to do this. The letter finished, "If you would like to discuss this matter please give us a call on X". There were no actions they said they would take or what I should take.

I actually did intend on letting out my property for the year whilst I am away. I don't have any issues changing my mortgage to a buy-to-let (I know there a certain conditions that I must fulfil) but I was wondering whether anyone knew for sure what the the Bank can actually enforce if someone continued to rent out their property on a residential mortgage out of interest?

A response from someone who works for a bank in mortgages or is a legal advise would very much be appreciated

[Melboy]

The short answer to your question Daniel is Yes they can take action against you for you would be in breach of your mortgage contract with them.

This is a question that often crops up on another legal Forum and the legal answer is always the same as I have just indicated to you.

Mel.

[danielsmith89]

The short answer to your question Daniel is Yes they can take action against you for you would be in breach of your mortgage contract with them.

This is a question that often crops up on another legal Forum and the legal answer is always the same as I have just indicated to you.

Mel.

Thanks for the reply Mel.

I know they can take action, but what kind of action?

1) Force you to change to a buy-to-let? (I don't mind changing to a buy-to-let but there are criteria you must fulfil to get a buy-to-let, an example is that rental must be 120% of your monthly mortgage payment.

2) Force you to return all funds lent to you on the basis that you broke a contractual agreement?

3) X, Y, Z?

[Melboy]

Thanks for the reply Mel.

I know they can take action, but what kind of action?

1) Force you to change to a buy-to-let? (I don't mind changing to a buy-to-let but there are criteria you must fulfil to get a buy-to-let, an example is that rental must be 120% of your monthly mortgage payment.

2) Force you to return all funds lent to you on the basis that you broke a contractual agreement?

3) X, Y, Z?

As an absolute last resort, if all else fails, they can fore-close on you by calling the outstanding mortgage in.

This means of course, in all probability, you will be forced to sell-up.

Very rarely does this happen because a compromise in the mortgage lenders favour normally happens.

Mel.

[Simon Dewsberry]

Daniel

The rection varies enormously from lender to lender ;

from " no problem sir, we will just leave everything exactly as it is - just show us proof your insurance cover the "rented " situation"

to "this product will not allow the situation - so you will have to remort either to a new product (either with us or different lender" and as Mel says they can call in the loan - but i never come across this actually happppening..........

In practice they normal just up your interest rate and ask for proof of insurance......."

Simon

[chander]

All lenders specifically exclude the right in the legal charge to let the mortgaged property. Anyone who lets

without permission would be in breach of the mortgage and is in default.

The Banks or Lenders normally have very little choice if one wants to rent their property.

They can ask you

-to repay the mortgage

- convert it to buy to let

- ask you for the sort of tenancy contract you will be having

( like to exclude the tenant's right to permanent occupancy)

- details of the prospective tenants and the rent payable.

At the end of the day they rather let you rent than repossess because you have broken the contract.

Hope this was useful.

Recently I sent a letter to the lenders of my property advising them that I would like my correspondence address changed to another address in the UK as I am going to work in another country for a year.

They responded with a letter advising that they would not be changing my correspondence address because they believe I have let out my property and that under the terms of my residential mortgage I am not allowed to do this. The letter finished, "If you would like to discuss this matter please give us a call on X". There were no actions they said they would take or what I should take.

I actually did intend on letting out my property for the year whilst I am away. I don't have any issues changing my mortgage to a buy-to-let (I know there a certain conditions that I must fulfil) but I was wondering whether anyone knew for sure what the the Bank can actually enforce if someone continued to rent out their property on a residential mortgage out of interest?

A response from someone who works for a bank in mortgages or is a legal advise would very much be appreciated