However, if you plan to do this you must get the right Mortgages and Finance in place. Some mortgage lenders may simply grant you consent to let and you’ll pay a small admin fee whilst others may make you pay a slightly higher mortgage rate if you have to go onto a buy to let mortgage.
With the thought of increased outgoings, some of you may be tempted to let your home in private without telling your lender. In the long term, this is a false economy and could end up being a very expensive mistake.
Firstly, you would actually be committing mortgage fraud as the vast majority of mortgage contracts say that if you want to let your home, you have to seek permission. If you go ahead and don’t tell your mortgage provider, and they find out, they would be within their rights to change your mortgage conditions and put a black mark against you so that you’d struggle to get another mortgage in future.
The other major factor to consider is insurance. If you’re going to let out your property, you will need Landlords Insurance. If you only have residential home insurance, then it won’t be valid. This means that if a bad tenant leaves a candle glowing over night and your house burns to the ground or there’s a leak that ruins your bathroom, then your insurer is perfectly within their rights to not give you a penny.
So, before you put up a To Let sign, make sure you get Mortgages and Finance sorted first and get specialist Landlords Insurance. You can get a quote now on the Legal 4 Landlords site by clicking here.