Accidental landlords are caught in high-rate trap as they fail to tell bank about tenants | Mail Online

Accidental landlords are caught in high-rate trap as they fail to tell bank about tenants | Mail Online

Accidental landlords are being stung with more expensive ‘let-to-buy’ mortgages as lenders take advantage of desperate sellers unable to move.

The stagnant housing market means frustrated vendors are being forced to rent their homes against their wishes, while they try to buy elsewhere in the meantime.

But many fail to tell their lender about having tenants and, if found out, can face higher punitive rates when forced to change their mortgage type.

David Hollingworth, director at mortgage broker London & Country, warns: ‘You must tell your mortgage lender before renting out your home. Otherwise you are breaching the terms of your contract.