I have been reckless in not informing my mortgage lender that I’m renting my property out, however my most recent tenants have left the place in a state and I need to claim on malicious damage.
I’m concerned firstly that my insurer will contact my mortgage lender, and secondly if they do inform them, what are they likely to do?
Luckily there are no tenants in there at the moment so no one can be evicted, but can my house be repossessed?
I’ve never missed a payment, however the mortgage does have a guarantor on it.
My final concern is if the mortgage company demand repayment or switch my mortgage to a buy to let or black mark me, will this affect the guarantor as well or just me?
My thoughts are to stay away from the insurer and just foot the bill for the damage caused?
On another note, I would like to do things properly and request permission to let. If the mortgage lender says yes, is there any way of them finding out that I’ve already been renting it without consent?
In an ideal world id like to do the right thing with as little consequence as possible, whilst I know some mistakes will have to be paid for, if anyone has any advice on all the above I would be eternally grateful!!