I just bought my first house 6 months ago and have a regular mortgage with the natwest. Unexpectedly I will be working overseas for about 2 years in the next couple of months and would like to rent out my house. How are the natwest (or any lender) likely to respond to me renting out the property? What are the possible consequences of me not informing them that I am renting the property?
This happened to me so I wrote to my lender informing them I had to go and work abroad (Australia) and gave them my expected return date (4 years), I assured them it was not a buy to let situation and they left the rate the same. The worse case they will add at least 1% to the interest rate, but do make sure you tell them you're leaving, terms and conditions usually say so and there are possibly situations were you could have problems.
Possible is that they tell you that you are breaking the t&c and must repay get a new mortgage.
If you make sure payments are on time it's extremely unlikely they would ever find out. If they found out, they are unlikely to do anything unless you miss payments. Basically why should they care if they get their money.
Your tenant will also have less legal protection against the bank throwing them out if they have to repossess. Rental agreements usually require you to notify your mortgage co.
David. 1keytools.
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I addition to the above, your buildings insurer would need to be told that the occupant is a tenant and not you.
Rob Graham
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