Posted on 11 December 2011 by charles
In 2006 I took out an interest only 5 yr fixed term mortgage with Northern Rock. I want to rent the place out, do I have to switch to a BTL mortgage? Do I have to seek permission from NRAM to let the place, even though its a way of enabling me to keep up the mortgage payments?
You should let NRAM know that you intend to let your property and ask for their consent to this. Whilst it is possible they may never find out the property is let, you would be in breach of your mortgage conditions and NRAM could seek to repossess the property. All it can take is for a letter to be returned to them marked 'unknown' or 'gone away' and they would start investigating whether or not you still lived in the property.
It is quite possible that NRAM will allow you stay on your existing mortgage product and rate and in this instance you can expect to pay an annual fee of between £100 - £250.
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We recommend you seek professional advice with regard to any of these topics where appropriate.