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Letting my Property

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?

Charles

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.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


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YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

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