Newbie "Landlord"

[JohnD]

Hi, i've recently found this forum and its opened my eyes to much of the pitfalls involved renting property. I'm in the process of renting my house out. Because i have no experience in this kind of thing, i've decided to take the easy option and let a letting agent do all the work.

I bought the property last year (Feb) in Derby, but because of the work situation i had to move back to London. Now i am looking for a mortgage for a property in the London area. I'm not too sure how it will work. I've been told that if i apply for a mortgage for a residence in London i will have to change the Derby mortgage to a buy to let mortgage! I'm not sure of the implications of doing it this way, my existing mortgage is a fixed rate for 3 years so there will probably be some penalties involved. Am i taking the right approach here or is there an alternative way of dealing with the situation?

Out of curiosity i was told that i should inform my Building insurance company that i was letting out the property, which i can understand. But i was also told that i should also inform the mortgage lender. If i wasnt applying for a second mortgage, why would they need to know?

Thanks for your time

John

[Melboy]

I can answer part of your question John..........

You have to inform your Mortgage Company because they also part own the property until you have cleared your mortgage therefore they have a financial interest.

Also deep in your mortgage contract you initially took out will be a clause stating that they would need to know of any change of circumstances in who is actually living in the property and if you have a Tenant it won't will be you will it.

Mel.