Renting out your home short term could be made more difficult

For many people in the past being able to rent out their homes when they are away for a period of time has been a great way to raise a little extra cash as well as to save leaving their property empty.

In most cases homeowners that decided to do this in the past had few problems in getting permission from their lenders. However, new regulations have been brought in to clamp down on people that rent out their properties over the short term, and this could make things far more difficult for some homeowners.

In the current economic and financial climate a rising number of people may want to rent out their homes when they are away in order to help make ends meet financially, but with regulations making things more difficult this may not always be possible.

Homes are often rented out on a short term basis by people that are working away for a while, or those that decide to go travelling for a period of time or stay with relations.

A rising number of lenders have now started to clamp down on those that are looking to rent out their homes, and whereas in the past homeowners could usually get permission quickly and without any hassle if they wanted to rent out their home for a while this has now changed and lenders are being far tougher with these homeowners.

Some lenders are now demanding letting plans from the homeowners, making them come in for interviews, and even then refusing them permission.

According to one mortgage broker: ‘Over the last ten years lenders have been very blasé about granting consent for homeowners to let out their property. They’ve had so much business coming in that they’ve let this sort of thing sneak through. But now they’re cottoning on to the fact that property owners have been taking out residential mortgages and then letting out.’

Tags: problems, Mortgage broker, property, mortgage, consent, climate