hayls Posted August 8, 2011 Report Share Posted August 8, 2011 Hi I am in the process of renting my house out at £400 per month the rental value of the property. I do not want to sell the property yet as we wouldnt get the money back fot it as of yet and would like to keep it for a few years at least. I have spoken to my mortgage company today and they are sending out the forms for the agreement to let the property. Our mortgage payments repayment and interest are £462 so i know i will have to pay the extra £62 a month which i am prepared to do and have the funds. Just something the mortage comapnied mentioned was the rent has to be 125% more then then payments and i am a bit confused do they mean on the interest amount? ther is no way we could charge more then £400 for our 1 bedroom house per month. Can anyone advice? I was also considering reducing it to interest only. Everything is moving so fast and now i am panicking a little bit. Thank you Link to comment Share on other sites More sharing options...
Mortitia Posted August 9, 2011 Report Share Posted August 9, 2011 So it seems your rental income will not cover the amount set out by the mortgage company. If you go ahead you will be breaking their rules You could change to interest only mortgage but there will be a fee and you will have to hope that property prices in your area increase or you will be in negative equity. Mortitia Link to comment Share on other sites More sharing options...
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