Q I bought a flat at the end of last year when my job seemed secure, but now that I've lost my job I am concerned about my mortgage payments. I have redundancy money to back me up, but I'm wondering if I can rent out my property under my present mortgage terms or if I will need to talk to my mortgage company about changing to a buy-to-let mortgage. I didn't buy to let, but I'd rather let than be forced to sell. Am I legally allowed to do this? MM
A There's nothing illegal about deciding to let your flat but you will need to talk to your mortgage lender. Depending on your lender's practice, you will either need to switch to a buy-to-let mortgage or pay a fee for your lender's agreement that you can let the property. But I'm not convinced that letting your flat is the answer to your concerns about meeting your mortgage repayments. If you move out and let the property, you will need to find somewhere to rent yourself so you could end up simply swapping mortgage for rent and being no better off. Instead of moving out, I would talk to your mortgage lender about what can be done to temporarily reduce your mortgage payments. For example, if you have a repayment mortgage, you could switch to interest-only until you find another job. Your lender may allow you to take a payment holiday or perhaps extend the mortgage term which would reduce your monthly repayments.
