Consent to Let, end of mortgage term, Buy to let?

dylan80_2

I have a fixed rate, interest only mortgage with RBS which ends in Nov 09.

Due to an office move, I would like to rent out my flat from Sept rather than sell for a few years.

I have contacted RBS and they are sending me a 'Consent to Let' form which only incurs a £100 admin fee.

However, when I asked what would happen when my mortgage came to the end of its term in Nov the answer seemed quite confused... first of all they said that I would need a Buy to Let, then, when I pressed him, he said that I would need to contact them at the time and 'see what they offered'.

I find this very confusing, and also, in the current market, my preference would be not to change lender as I know my flat has lost value and I am borderline negative equity.

Any advice?

Thanks

Richard_Webster

I have a fixed rate, interest only mortgage with RBS which ends in Nov 09.

Taken literally this means the mortgage will have run its term (e.g 25 years) and will have been paid off by then. I suspect OP didn't mean that, but rather the fixed rate or other special deal would come to an end, is that right? OP would then go to RBS's Standard Variable Rate (SVR) or that plus an add on because the property is being let.

As I understand it at the moment lenders are simply not offering new mortgages on SVR but rather Fixed Rates like 4.7% which then reverts to SVR which might be only 3.5% - so it may be that the rate that OP ends up with won't be that awful and changing lenders may not be a good idea anyway.

socrates

dylan80 wrote: »

I have a fixed rate, interest only mortgage with RBS which ends in Nov 09.

Due to an office move, I would like to rent out my flat from Sept rather than sell for a few years.

I have contacted RBS and they are sending me a 'Consent to Let' form which only incurs a £100 admin fee.

However, when I asked what would happen when my mortgage came to the end of its term in Nov the answer seemed quite confused... first of all they said that I would need a Buy to Let, then, when I pressed him, he said that I would need to contact them at the time and 'see what they offered'.

I find this very confusing, and also, in the current market, my preference would be not to change lender as I know my flat has lost value and I am borderline negative equity.

Any advice?

Thanks

This is probably one for the mortgage board - they have more experience of the particular lenders over there.

dylan80_2

Thanks Richard - yes, I did mean end of a fixed deal.

So it sounds like I will drop to SVR ( as i had expected) and then perhaps an added for letting.

This would be a pretty good outcome!