Posted on 2 August 2012 by valerie
If we let our house out for 12 months are we obliged to change our interest only mortgage to buy to let.
This is very much dependent on your lender, but I would be surprised if for a period of 12 months they insisted on changing your residential mortgage to a buy to let mortgage. You will need to apply for your lender's consent to let the property and there is usually a form to complete and an administration fee to pay. Failure to get consent will be seen as a breach of your mortgage contract and whilst unlikely could lead to your house being repossessed.
I recommend that you speak to your lender about how to get their consent and ask them what fees are payable and when. You will also need to speak to your buildings and contents insurance providers to ensure that cover continues if and when you let the property.
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