buy to let mortgage - minimum deposit expected?

Kavanne

sandford6016 wrote: »

Thanks Kavanne! If you don't ask you don't get!

the risk to the OP is that they buy using a residential mortgage. Apply for consent to let, and the lender says no. What will they do then!?

sandford6016

Ask before the question before anything is signed up to?! You avoid the 'Doh' factor that way!

Kavanne

sandford6016 wrote: »

Ask before the question before anything is signed up to?! You avoid the 'Doh' factor that way!

What if the lender changes their mind? Surely it's fraud of some description too? Telling the lender you are going to live there when your sole intention is to rent it out? Any mortgage advisors around today?

FraudBuster

A friend has just had agreement from a major high street lender at 50% LTV and 150% rental cover.

sandford6016

When was it ever suggested that the poster tells the lender that he/she is going to be living there? Would someone really be so stupid as to go through with something without getting things confirmed in writing?! After all, a 'consent to let' would be the bit of paper that you wave in the face of the lender if they did decide to change their mind (?) and you would have read all the terms and conditions before things are signed/finalised/agreed.....

silvercar

sandford6016 wrote: »

When was it ever suggested that the poster tells the lender that he/she is going to be living there? Would someone really be so stupid as to go through with something without getting things confirmed in writing?! After all, a 'consent to let' would be the bit of paper that you wave in the face of the lender if they did decide to change their mind (?) and you would have read all the terms and conditions before things are signed/finalised/agreed.....

So what are you putting on the mortgage application? If you let the lender assume you will be living in the property, the mortgage will be based on your income and conditional on you redeeming the residential mortgage on your main home. If you specifically say you will be keeping your main mortgage and home you will be asked your intentions. If you say you want consent to let, the lender will direct you to their BTL mortgages.

opinions4u

sandford6016 wrote: »

When was it ever suggested that the poster tells the lender that he/she is going to be living there? Would someone really be so stupid as to go through with something without getting things confirmed in writing?! After all, a 'consent to let' would be the bit of paper that you wave in the face of the lender if they did decide to change their mind (?) and you would have read all the terms and conditions before things are signed/finalised/agreed.....

It's a long time since I've filled in mortgage paperwork with a customer, but I do clearly remember asking questions about who was going to be living there and would the property be left empty for any period of time.

You would certainly never have been able to obtain an up-front "consent to lease" prior to the mortgage completing. Getting it further down the line is not in any way guaranteed either, and different lending policies at different times could snooker you.

In other words, the application form will almost certainly say you intend to live there and you will sign to say as much.

To do this when you know you won't be moving in would be a clear misrepresentation and would put you at risk of having the property rather speedily repossessed as well as being a case of mortgage fraud.

Those brokers with a more up-to-date working knowledge that goes beyond my rather aged CeMAP qualification can feel free to correct me if I'm wrong.

socrates

sandford6016 wrote: »

When was it ever suggested that the poster tells the lender that he/she is going to be living there? Would someone really be so stupid as to go through with something without getting things confirmed in writing?! After all, a 'consent to let' would be the bit of paper that you wave in the face of the lender if they did decide to change their mind (?) and you would have read all the terms and conditions before things are signed/finalised/agreed.....

Ok lets get this right.

When you apply for a 'normal' mortgage as you said this implies a residential mortgage , not a buy to let or a commercial mortgage.

Residential comes from the word resident or vice versa.

We may all be missing your point.

How do you apply for a normal mortgage and then get a consent to let all in one swoop without it being a BTL.

You are either applying for a mortgage to live there or let it out.

Please explain as so far not one person has agreed with you and all you give are short sharp put downs.

dunstonh

I cant see it being at all sensible to buy a residential mortgage in the hope the lender will give consent to let out. I cant see how you would get round the application either without committing fraud.

Those brokers with a more up-to-date working knowledge that goes beyond my rather aged CeMAP qualification can feel free to correct me if I'm wrong.

I'm with you on that obviously but I think this is a common sense issue.

jamesd

With all this talk about not getting a standard mortgage on the second place, don't lose track of the ability to use a mortgage on your own home instead, if you have the equity. That's entirely acceptable.