Do any fixed rate residential mortgages offer rental?

thg

Hi all,

I'm looking for a five year fix, but its really important that I'm allowed to rent out the property for at least some part of that as I will be leaving the country.

I've phoned at least three different lenders who say they do 'offer' the ability to rent the property but its at the discretion of the lender. :rolleyes:

Do any lenders offer a guaranteed rental facility? (If I can`t rent it out I'm potentially losing thousands)

Or does anyone know the criteria that lenders apply to assessing whether to let your rent the property out, none have been able to tell me? (preumably LTV, whether you have tenants ready to move in, etc.)

Best

luckyfool

You are never going to get a lender to commit up front to allowing you to rent a property out in the future on a residential mortgage. Having said that if the ltv at the time is under 75% and you have been with them over a year I suspect most lenders would potentially grant a consent to lease. The likes of LTSB/C&G, Halifax etc are ones that have tended to allow it in the past. Nationwide are funny about it and I would avoid them if you think it is likely you would need to do so.

thg

Given the house price reductions postulated for 2009 I think we may be over the 75% LTV. I'd would be interesting to know the criteria for allowing rental so that we could try make ourselves more likely to get it.

We are going abroad in mid-2010 so perhaps the market may have started to pick up by then? Can`t see it picking up speed for quite a while after though.

Slightly odd situation all the same. The lender won`t allow you to rent because your seen as a 'risk' but by not allowing this your decreasing the income of the person attempting to rent and creating more risk.

middo2905

I was in the middle of a 2 year fixed with Abbey when i contacted them enquiring about what i could do if i decided to rent my place and move in with my girlfriend. They told me that the mortgage would just continue as is until the 2 year period ended and i would then have to look at a different product.

I think they may be wary of you getting a mortgage at a lower rate than Buy To Let, then just letting it out for and reaping the benefits.

Vincenzo

Contrary to an earlier post I have a Nationwide mortgage and was given 3 years consent to let with no fees, no change to terms and no hassle whatsoever.

I also drew down on the equity (6 months before asking for consent to let) to buy onward so LTV was around 85% but I got the impression that this was not even taken into account.

I did the same with C&G on another property previously and they were equally accommodating, although I seem to remember they charged a small admin fee.

Although all this was pre credit crunch!

kelly10_2

Can anyone help with the up to date position with Cheltenham and Gloucester on their consent to let policy please?

_Andy_

kelly10 wrote: »

Can anyone help with the up to date position with Cheltenham and Gloucester on their consent to let policy please?

Have you not asked C&G?

alan_blue

we got consent to let from NR and thier terms were that the rent was 120% of the mort and that it was under 75% LTV. I could not fullfill either of these so wrote a nice letter off and they granted it lol

If you find a lender that gives consent at the remort stage from the outset please let me know as i seriously need a remort and consent to let too!! and i already have tennants in there!

hope this helps

thg

alan_blue wrote: »

we got consent to let from NR and thier terms were that the rent was 120% of the mort and that it was under 75% LTV. I could not fullfill either of these so wrote a nice letter off and they granted it lol

I phoned Abbey and their conditions are that the LTV must be 75% or below. If you are over 75% you can write in and ask for an exception which is sometimes granted depending on circumstances.

A+L (the sister bank) have totally different criteria. All they require is that your mortgage is not in arrears. LTV is totally irrelevant.

Of course all decisions are at the discretion of the lender.

alan_blue

thg, do you think they will still uphold these at the time of mort or once down the line a while?

thg

There are no guarantees. I tried (unsuccessfully) to get them to send me a letter confirming I could let on a residential mortgage at a future date - I have unqiue circumstances but realised it was a long shot.