Advice? Negotiating mortgage payments & consent to let???

mcgetts

Hi all

Please forgive this post as it is somewhat of a re-hash of other members questions but I have searched a lot in the forum and cannot find a clear answer to my dilemma.

I have a property which I bought over 18 months ago and lived in for 8 months - spent a lot of time/money on doing it up then moved out to another place hoping to sell it- find myself in the same painful place as others as it is still not selling and I have been covering the mortgage on it along with the one I am paying for where I live now.

I am now struggling to pay both and I am not sure how to approach my lender about coming to some arrangement to reduce the impact this is having on me. So I would welcome advice on the best way to negotiate with lender on payment holiday/reduction/deferral. The lender is Bristol & West and I have an interest only residential mortgage with them - have made no overpayments on the mortgage.

I am also considering renting it out but as B&W have removed all their products I am not sure what this means for me. I would ideally like to get consent to let but don't know if they do that - if they do what is involved and related costs - and if not what are the likely costs of any BTL product they would provide. When I bought the place I had 85% LTV but I imagine that will have reduced quite a bit.

So in summary:

1. Advice on negotiating with lender to reduce/delay/defer mortgage payments
2. Info on whether B&W do consent to let and what is involved/how easy to get
3. Info on what B&W may offer in terms of BTL products to existing customer (assuming they don't do consent to let)

I really appreciate the help.


Thanks

silvercar

1. Ask if you can change to interest only or take a payment holiday.

2. COuld always ask without giving your name.

3. Will probably need a low LTV and rental income to cover the mortgage.

mcgetts

Thanks Silvercar - some clarification points:

1. Already interest only - will they allow payment holiday if I have not made any overpayments?

2. Will give it a try but I was hoping someone may already have experience of this with B&W on the forum

3. As I am an existing customer will they still put me through the same conditions as a new customer? Since prices have dropped am not sure what my LTV would be now and if it did not meet their level does this mean they would not offer me a BTL mortgage?? Would they just not convert my existing mortgage and put it onto a BTL rate? No doubt this would be higher than my existing rate. What am I supposed to do if they do not offer BTL but I need to rent out property?

silvercar

1. Possible but unlikely. They could allow you to capitalise the payment and add it to the loan. I think it is unlikely.

2.?

3. Don't know, I suggest asking without giving your name initially.

What am I supposed to do if they do not offer BTL but I need to rent out property?

Move to a BTL mortgage with a different lender?

Let without the lenders consent ? Not ideal and your tenants may not be happy if the property got repo's as they would be turfed out. But many people do do this - and get away with it.

Why don't you reduce the price and sell? If you put tenants in for a year, you will need to redecorate when they leave, in order to remarket for sale at a premium. A lot easier to sell up now and avoid the hassle.