Come clean on ‘rent to move’ plan plea

Don’t mislead – it’ll be trouble!

If you are thinking of renting your home in Darwen…. Bolton… Blackburn or anywhere else right now in order to move on elsewhere DON’T mislead you mortgage lender.

The idea is that many homeowners in the North West Region that need to move are renting their current home and then renting a new place to live, to try and ease monthly living costs and also to cut out the sky-high cost of actually buying and moving to a new home. Fair enough for some homeowners this plan is hitting a snag.

Pricey premiums

Says ALE Founder Paul Ainsworth Lord, “In the past many mortgage lenders simply granted consent-to-let and perhaps charged a small administration fee – now they often demand a very pricey premium from home-owners who want to rent their homes and move to save money.

Some have started charging larger and larger fees and are also forcing their customers onto expensive buy to let mortgage products if they want to let out their homes. I know of cases where an extra 1.5% is being demanded.”

Keeping ‘stum’

To avoid this extra cost, we know some home-owners wishing to rent their own home and rent elsewhere are keeping ‘stum’ and not telling their mortgage lender of their plans. This is NOT a good idea.

Shocked

Says Paul, “I have been shocked to hear that some other agents in and around Darwen are telling people that this is an ‘okay’ thing to do – it most certainly isn’t and they should not be suggesting to people that it is okay.

It could be a disaster if your mortgage lender does indeed catch you at it. Lenders are now very much on the alert to this and pleas about family needs and such excuses fall on deaf ears!

Re-possession threat

I have plenty of experience in the recent past of battling with lenders to avert and defend potential repossession on the grounds that they have not been told about a rental and that this constitutes a mortgage breach and thus repossession of the property is a fair response.

Come and see us

So now you know. If you are unsure what to do – came and see us at Ainsworth Lord Estates, a leading Letting Agent in Darwen and the North West Region and you will get the right advice and sensible guidance from us that won’t leave you in the mire at a later date.”.

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