Will I need to tell the lender about HMO
Hello fellow members,
I need some advice - I currently have a standard BTL mortgage of which all tenants are on individual tenancy agreements room by room. The council is currently processing my HMO License application so I am still waiting on a decision which should be end of this month.
My mortgage fixed ends February 2019, so will I need to tell my lender that it is now classed as HMO (once I have hopefully received granting of license) before the fixed rate ends or do I even have to tell them at all? In addition, will everyone need to move onto one tenancy agreement? it is not ideal as I have students and they all come and go as and when their courses end.
I just wonder whether it will invalidate my buildings insurance if I stay on a standard BTL mortgage when the house is licensed HMO.
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