Confused about concent-to-let and new mortgage

selbailey

Im going through an independant mortgage broker - shes really good.. can u contact them before hand reguarding it or is it just that if u get declined they can ring up and argue it? if only things were straight forward!!

sophievenusdoom

The IFA should be able to give you a better idea of whether you will be accepted or not. I would call her tomorrow if I were you :-)

Thrugelmir

selbailey wrote: »

Im not letting as I want to profit etc.. Its because the current market at the moment and houses not selling - so its a short term thing until I can sell it.

I just want to make sure it doesnt jepodise me and my partners chances of getting a house.

How long have you had your property on the market for?

selbailey

i havnt yet, loads of houses by me arent selling at all.. So planning to rent it until things pick up again x

Thrugelmir

selbailey wrote: »

i havnt yet, loads of houses by me arent selling at all.. So planning to rent it until things pick up again x

Then my suggestion would be to ensure that if you let that its at a profit. As otherwise it can only be at a loss. As letting may not necessarily be short term. As it may take a while for house prices to recover if at all in the medium term.

The interest rate you can obtain on your dream house mortgage will be determined by your LTV. So selling your existing property and releasing the equity in order to borrow less may provide a better return.

haras_nosirrah

Nationwide are a nightmare for consent to let - I wouldn't recommend them for this at all

Unless you can show a signed tennancy agreement, and have 1 months bank statement showing you have already recieved rent on the property they will not treat it as self funding and will treat the other mortgage as a commitment.

The - so I have to move out of my house and rent it out before applying for a new mortgage, what if it falls through I will have nowhere to live - argument will not work. You must have already been renting it out for one month and have the income coming into your account from the name on the tenancy agreement, prior to applying for the mortgage with Nationwide on the new property unless both mortgages fit within their affordability. You must also have proof of consent to let from your existing lender and a letter from an Arla registered agent confirming it is an attracting proposition for rental purposes.

If I were you I would try another lender for the new mortgage.

Thrugelmir

haras_nosirrah wrote: »

Nationwide are a nightmare for consent to let - I wouldn't recommend them for this at all

Your comment has reminded me that the N\W charge an additional 1.5% interest, although they call it a charge, for the privedge of doing so.

haras_nosirrah

Who is your current lender?

selbailey

My current lender is Santander! they let me change it to the concent to let.. however they wont let me and my partner have the mortgage we need saying that they will only accept 50% of his self employment as it is in a different line of work to his permanent job therefore a risk - silly hey!!

I queried this with Nationwide and as you just stated they said I need to have a tennent in the house from the word go.. however my mortgage broker then said to me that I was speaking to someone on the highstreet where as she speaks to the broker side of things and it should be fine...

If this gets declined because of the rent situation could I not then move out and let the person move in (take the risk).. go into nationwide and ask them to review the application based on the new information.. could they do that?

Thanks

haras_nosirrah

Your broker will not get it through with Nationwide without you having someone already in there.

I am a broker and I tried to get my own new mortgage with a consent to let with Nationwide and I can promise you it won't happen unless you can fit both mortgages within affordability with Nationwide. I could fortunately fit both inside their affordability but even that was a major headache.

They do not want to lend as they don't know you will get a tenant therefore you would need to show you have already rented it out or they will take it as a commitment. Not all lenders are the same but Nationwide would be a waste of a valuation fee unless both fit their affordability.