Going travelling is the dream of many people, however, the expense of everyday life can add up quickly and hold you back from being able to travel. The main expense for most people is their mortgage, most likely for you too, so knowing what to do with your home when you’re away is critical.
Yes, you can go travelling with a mortgage. However, there are a few key factors you need to consider such as getting the right paperwork in place if you’re going to rent out your property, as well as understanding the implications if you leave your property vacant.
In this post, I’ll run through the various options you have if you want to go travelling with a mortgage as well as things you need to consider.
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What To Do With Your House When You Travel?
Depending on how long you’re looking to travel, you have a few options. You can either rent out your property, leave it vacant or sell it. Each one has its positives and negatives which I’ll run through.
- Rent out your property. This can be an excellent option as it can mean you can earn money whilst you are away to not only cover your mortgage payments but you may also have some left over to put towards your adventures. Renting out your property also means you have somewhere to leave when you come back from your travels which is also very helpful. However, if you have a residential mortgage you may need to apply for permission from your mortgage lender to rent out your property whilst you’re away. I’ll explain this further later in the post.
- Leave the property vacant. If you have enough money saved to pay your mortgage whilst you’e away, leaving the property vacant may be a great option and is also a lot easier. Although you won’t have any money coming in through rent, you still get to keep your property which you can come back to after travelling. Before you leave your property vacant, make sure you understand whether there are any conditions in your mortgage agreement or home insurance that say how long you can leave your property vacant. If anything were to happen whilst you’re away, you want to make sure you’re covered. I’ll explain this further in the post.
- Sell your property. Depending on how long you’re going travelling for, selling your property may be the best option. If you’re looking at being away for more than a year, managing a rental property, possibly your first rental property, from a different location can be difficult. Also leaving your property vacant for long periods of time can come with a lot of issues. Selling your property can also give you a great cash injection into your holiday plans, or even have a lot of spare money in case you want to stay longer or live it bit more extravantly whist you’re away.
Can I Rent My Property And Go Travelling?
Yes, you can rent out your property when you go travelling. This is the same whether you have a house or a flat, however, you will need to notify your mortgage lender and ask for their permission.
Assuming that you’re talking about your main residence, you will most likely have a residential mortgage. All lenders require that you notify them if you intend to rent out your property. You can ask for permission to temporarily let out your property, known as a consent to let agreement. This can be great if you’re intending on going travelling for up to a year and most lenders should approve your request.
However, if you’re looking at going travelling for over a year, your mortgage lender may require that you move to a buy to let mortgage which will effectively turn your property into a full rental property. Switching to a buy to let mortgage can have a number of implications, including the requirement for a higher deposit and have a higher interest rate. Also, there are a lot of requirements you need to fulfil if you are to become a landlord including making sure your property is in line with certain regulations.
This post I’ve written on whether you can rent out a property with a residential mortgage will be a useful read for those looking to rent out their property whilst travelling. I go through what things you need to consider in a lot more detail as well as what penalties can happen if you are caught renting your property without permission.
Issues With Leaving Your House Vacant A Long Time
A number of issues can arise if you plan to leave your home vacant for a long period of time. Below I’ll run through some things you should consider.
Home insurance. Most home insurance providers have clauses in the contract that state you have to be living in the property, or that it won’t be vacant for more than a certain length of time. This can vary contract by contract, although is usually around a month. This is mainly so if there is an issue with the property, such as a water leak, or gas leak, it’s not left for a significant amount of time and risks causing a lot more damage, which the insurance provider would otherwise have to pay for without that clause.
Mortgage lender requirements. Depending on your mortgage provider, some require that you make them aware if you’re going to leave your property empty for a certain length of time. It may be worth looking through your documents to avoid any potential issues.
Turn off utilities. A lot of utility providers also recommend turning things off such as gas, water and eclectic including unplugging devices if you’re going away for any length of time.
Home insurance and mortgage providers may be satisfied if someone visits the property whilst you’re away or even stays over every now and again to house sit. However, remember that there is a reason why they want someone living or at least regularly visiting the property as it ensures if things go wrong there’s someone around to make sure it’s doesn’t get worse. This can even include things like burglary or vandalism, so make sure to plan for the worst.
How To Manage Other Types of Expenses When Travelling
Mortgages aren’t the only expense that can hold you back when travelling. Any long term financial commitments can cause issues, including things like car loans, credit card repayments and annual subscription payments.
If you are thinking about going travelling, the earlier you can start to plan the better. This can allow you to make decisions such as taking rolling monthly contracts on things you won’t need when travelling or even cancelling things helping to save money for your big adventure.
Summary
Overall, as you can see, you can go travelling with a mortgage, however, you just have to make sure you plan ahead so you can make the right decision for you.
If you do have any questions about your mortgage, make sure to speak to a mortgage advisor as they can give you advice for your specific situation. They’ll be able to take you through all of your options as well as highlight any risk you could face for breaching any contracts you have in place.
Anyway, I hope that post has helped and I hope you enjoy your travels. I’m definitely jealous, could do with a holiday!
Hi, I’m John. I’ve always had a keen interest in Finance, so much so that I’ve made a career out of it! This site is a place where I can share everything I’ve learned as well as give me the excuse to research certain topics.
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