Many residential mortgage lenders will grant you what is known as 'consent to let' if you make them aware of your scenario and generally they will allow you to keep your current mortgage rate.
My advice would be to speak with your existing lender and see how they feel about your proposition. You will need to make them aware that you will no longer be living in the property anyhow, as if you let it out without telling them you could be contravening your existing mortgage conditions, which is a very serious matter.In the event that they will not grant you 'consent to let' or will not allow you to keep your existing terms, speak with an independent mortgage broker whom will be able to check what else is available on the market for you and assess whether you should remain with your existing lender or not.
As explained above, you must, at the very least, approach your mortgage company if you intend to let the mortgaged property out. A typical ‘ordinary residential’ mortgage will include clauses which prohibit you from letting out the property (or require you to get the lender’s permission before doing so). If you let the property without informing the lender, then you are in breach of the terms of the mortgage.
In these circumstances, the lender could take action against you. For
example, the lender might demand immediate repayment of the mortgage. If you
cannot repay the mortgage, the lender will normally be entitled to take
possession of the property and sell it.
So investigate available ‘buy to let’ mortgages, designed specifically
for buy to let investments. But be prepared to comply with some rigorous
conditions, imposed because of the credit crunch. For example, that you can
only apply for a 75% mortgage if you are over 25, your annual income (apart
from your rental income) is at least £35,000 and this is not your first
mortgage. As with any mortgage you should shop around and, if in doubt, take
advice from a trusted adviser.
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