First Direct - consent to let

polo2000w

I have a life tracker residential mortgage with First Direct which I'm happy with and have had for a while. I may have the opportunity to take a 1 yr secondment abroad and so may wish to rent the flat out in the meantime. Calling their general helpline implied that should I wish to rent the property out I would have to redeem the mortgage as they do not offer buy to let mortgages. Does that sound correct? I wasn't sure that they knew completely what they were talking about. I heard some banks offer consent to let - does anyone know the situation with First Direct?

simran_2

I am recenltly remortgaging to first direct and they have this in their terms that they do not offer mortages for buy to let. I am also going to life time tracker and if i have to buy to let my house after few years, i will have to remortgage to another lender.

djclare

This is correct. There is only one exception, which is that they will allow you to rent if you are forces, which my husband is, but even that required a lot of consultation with managers and was based partly on the fact that my mortgage is about 30% of the value of my home.

penguine

I would phone again to double-check. Ask to speak to a manager rather than whoever answers the phone, if necessary. You're not asking for a BTL mortgage, you want consent to let out your own residential property temporarily. Whether they agree to this may depend on the amount of equity in your property, the cost of your monthly repayments and the likely rental income.

martynh99

I have a one-account offset mortgage, same rules in their T&C's about buy-to-let / renting out but I rang them up about doing the same type of thing and they agreed to it for a fee of £100 to process it.

ChocolateBunny

I also have a tracker mortgage with first direct and recently asked the same question. I am with a new partner and looking to move in together to a rented property in another location but want the security of keeping my own property in case things don't work out.

After a lengthy phone call, first direct have agreed to allow me consent to rent out my current property for a maximum of 6 months, after which time they require me either to return to my property or redeem the mortgage.

I suggest you call again, (ask for someone in the mortgages team) if you have been with them for a while, have a good record with them and make it clear that you really don't want to move your business elsewhere, they may reconsider or at least give you a temporary period of consent. Good luck!

never_enough

Not done with FD, but have turned residential mortgage into a consent to let (for fixed term) but the lender required a higher rate of interest on the loan. Mortgage needed to be changed into proper BTL at end of period, or paid off.

karlgreenf

I have been with first direct since 1997 - have an offset mortgage and 80% LTV - I am having to work abroad due to the credit crunch - and despite having escalated this as far as I can within FD - I am having to pay the 5k redemption fee and remortage with another lender on a buy-to-let in order to be able to rent the property out - like I say - I was FD's ideal customer - with them for 12 years - I was using FD for main bank account, buildings & contents insurance, mortgage etc. - so BEWARE!

sdooley

will you really make so much rent over the period you are away to make £5,000 plus who knows what in extra interest payments to the buy-to-let bank plus the costs of repairs etc when you come back and storage for your personal stuff while you're away?

You could always 'take a lodger' for a room rather than letting out the whole flat - probably won't require permission - you get £4K tax free for the year and can go back home whenever you're in the UK. The fact that you're only there every now and then will be a bonus for them.

If you're going abroad for more than a year or two might it not be better to sell up before you go?

Just a couple of ideas, don't bite!

Premier_2

You can't have a lodger if you don't live in the property yourself.

If the property is not being used as the main residential home of the owner, it'll probably be in breach of the terms of the loan agreement.

I'm not biting - just giving some facts.

karie

sorry to hijack the thread temporarily... but does anyone know hsbc's stance on granting consent-to-let?
thanks!