Posted on 10 May 2010 by shagun Khare
We bought a flat on first time buyer mortgage. Because of job we need to relocate and we want to rent out our apartment. Do we need to change our mortgage?
It is possible that your existing Lender will allow you to keep your mortgage on the flat and grant you permission/consent to let and so your first move should be to talk to them and complete any necessary application forms. There is normally an administration charge and you can expect to pay anywhere between £25 and £150 for this.
Your existing Lender may grant you permission to let, but want to switch you to another mortgage rate or not grant you permission at all. In either case, you need to check whether or not any early repayment charges will be payable. As these can run into £1,000's you should ask whether or not it is possible to 'port' your existing mortgage to a new property and have the charges waived.
Once you have spoken to your existing Lender and know whether or not you can keep your existing mortgage, I recommend that you speak to an independent mortgage broker who can compare what you are being offered with the rest of the market.
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