First Direct and Buy to Let

disney_cjd

Hi All

Can I ask what would happen if you took an offset with First Direct who say in their terms that they do not lend against a buy to let but then afterwards you then let it.

What will / can they do?

mr_mortgage

If you don't tell them, and keep repaying every month ... absolutely nothing.

happybroker

mr_mortgage wrote: »

If you don't tell them, and keep repaying every month ... absolutely nothing.

...other than possibly making the tenancy agreement you have unenforcable!

Not telling them is a breach of your mortgage contract, it is likely that the terms and conditions will tell you that you ask them for consent to let the property and they either say yes or no. They will charge you a fee but usually don't mess with the rate.

minimike2

FD do not allow consent to lease.

Snaggles

If you want to use a lettings agent to let your property, they will want a letter from your mortgage provider confirming their consent. They might agree to it on a short term basis, such as if you were going abroad for a year with your job, but returning to the UK immediately afterwards and the property would be your main residence again, but if you are wanting to do it indefinitely, they wont agree it.

mr_mortgage

Snaggles wrote: »

If you want to use a lettings agent to let your property, they will want a letter from your mortgage provider confirming their consent. They might agree to it on a short term basis, such as if you were going abroad for a year with your job, but returning to the UK immediately afterwards and the property would be your main residence again, but if you are wanting to do it indefinitely, they wont agree it.

You perhaps overestimate the honesty and integrity of most letting agents ... Given their commission is on the line, they'll happily (in most cases, IMHO) turn a blind eye. In other cases where they will have the file checked by their boss they may go to the lengths of faking documentation to show it is a BTL mortgage.

I know first-hand that one of the major mortgage lenders' senior policy makers will tell you that as long as you pay up every month, they don't really care.

D.