Do I have to change my mortgage to rent out my property?

So I%26#039;m on a fixed rate mortgage for five years, but I was thinking of buying another property and moving to that, and renting this one out. Do I need to change my mortgage to buy to let? Or can I just rent my property out and get the tennant to sign a contract etc?

Do I have to change my mortgage to rent out my property?

You HAVE to inform your lender, your current mortgage may state that you are not allowed to rent out the property without their prior consent. If you do rent out the property without their consent, you are in breach of their terms and could lose the property

In any event, It may also be a good time to re-mortgage but if you so, ask for a buy to let....much better interet rates at the moment.

Do I have to change my mortgage to rent out my property?

No, you don%26#039;t, however, if in the fututre you should need to refinance, you will have to go with an investment loan as opposed to owner occupied which will give you a higher interest rate. Once you closed on that loan, you guarenteed your rate and terms. In the event that you secured another residence, you had to take another loan out for that home, but the first home does not come into the picture until you try to refinance it. Hope this helps.

Do I have to change my mortgage to rent out my property?

It will be upto your lender, but if you can avoid it I would to avoid arrangement and solicitors fees etc.. If you do rent your property out make sure you update your insurance to include Occupiers liability, just in case your tennant has an accident and decides to sue you.

Do I have to change my mortgage to rent out my property?

It is essential you inform your lender of your intentions to let. It might pay you to re-mortgage, as %26#039;buy to let%26#039; mortgages are often at a more favourable rate. Ask your lender for advice, but if you do not inform them of your intentions. you are probably contravening your mortgage agreement.

Do I have to change my mortgage to rent out my property?

The short answer is no.

However there are some things you may not have considered.

When you buy this other property that you mention, will you require a mortgage? If yes then the lender will find out from the credit check that it is a second mortgage and may charge higher rate.

Also, with your first mortgage you agreed not to let it out without the lenders permission (yes it was in the small print) if they find out they could increase the rate if they wanted to.