Mortgage Lenders Wary Of Accidental Landlords
Consent To Let Is Required From Mortgage Lenders
The National Landlords Association (NLA) said the number of would be vendors forced into letting their properties because they were unable to find a buyer has now risen to 7%, (up from 5% observed last year).
Becoming a reluctant or accidental landlord is where a person who wants to move house but cannot sell their existing home and elects to rent it out to tenants in order to cover the costs of the mortgage and the move.
In order to facilitate the change of residency, borrowers should contact their mortgage lender and apply for consent to let before accepting tenants that have passed tenant referencing checks.
If consent to let is not obtained from lenders, borrowers can opt to remortgage and switch to a specialist buy to let mortgage product.
Additional charges will usually apply, however, mainstream lenders are increasingly frowning on the process as they see it as people who cannot afford to sell property attempting to get the better of the system.
David Hollingworth from London & Country brokers said: “Things have toughened up in the UK mortgage market. Borrowers are on their knees in front of lenders, hoping to be allowed to rent out their own properties. If there is even a sniff of needing to move back in with relatives because of struggling financially, lenders are likely to be very nervous. If would be vendors are relocating for work then lenders are more likely to be understanding.”
