They may know you're renting!
There may be many of you reading this who may be feeling slightly uneasy at what I am about to say. Are you sitting on a resi mortgage but renting out the property? Not bothered to tell the lender that you are renting the property? Well it looks as if the net may be tightening.
I spoke to one high street business development manager (BDM) who said that they will continue to offer a consent to rent but after a 6 month period they will increase on the resi interest rate that you are on by 1%.
But there are thousands of you out there that are not playing the game and sitting on a resi mortgage but renting out the property without telling the lender. So it certainly sounds as if this particular lender has had enough and is in the process of sending 4000 warning letters out to those naughty owners saying that they know what they are doing and it needs to stop. Ultimately if the lender has proof and the owner continues to refuse to come clean then the ultimate sanction for the lender is to intimate repossession proceedings as the owner is not following the conditions of the mortgage.
My guess is that the letters that they are sending out are to those owners who have a current account with the same lender as they are borrowing from. How else could they know that you were renting - it's not as if they are going to knock on your door? They can see money coming in and assume that it must be from tenants so have decided to ask the question.
So do the right thing and pick up the phone to get that consent to rent before you receive that letter!