Nationwide, 2 mortgages and Let to buy - Please help?

Crosby

Hey guys, please listen me out and help?

I own a house together with my mum, both names are on the mortgage, I want to move out but keep my name on the existing mortgage.

I applied for a deal with Nationwide via the broker, they accepted it, but now they request a letter of consent from my current lender that my current house can be let out.

My existing lender wouldnt put anything in writing unless i fill an application to change the current standard deal to LTB mortgage deal. This will cost me 295 and 5 working days. They also request that I change home and contents cover to Landlords insurance.

How is this possible? How is my mum going to carry on living in the house if I change it to LTB?

Are there ways around it?
Please can you give any advice, if you need more info please ask, coz its very confusing

thank you

Crosby

Hi all

bit of update. If i fill out a Let agreement on the existing house with my mum, and if its granted, and everything goes to plan with the new house purchase, can I then ring the existing Lender and say Look i have changed my mind, i am not going to let it out now I am going to live in there, what are the concequences of that?

I will i think have to pay another fee to change the T&C, but ignoring this financial bit what are the legal complications?

getmore4less

If your income will not support the two loans then they want to see the other place being let.

Who will be paying the mortgage on mum house

Crosby

getmore4less wrote: »

If your income will not support the two loans then they want to see the other place being let.

Who will be paying the mortgage on mum house

My mum is financially capable of paying the mortgage herself on our current house. I have spoken to current lender and they have no problems taking my name off the mortgage coz my mums income is enough to pay the mortgage. Its just I dont want to take my name off plus there is a jolly good reason why I shouldnt. (too long to explain)

How do people buy 2 and more houses?

Conrad

Crosby wrote: »

How do people buy 2 and more houses?

Some lenders allow a second mortgage up to 90% ltv. It's really not a problem if you know what your'e doing.

getmore4less

Crosby wrote: »

How do people buy 2 and more houses?

They rent them out or have lot of income.

Crosby

LTV on existing house is 50% and i applied for 85% mortgage for a new house. I still experience problems.

Could you please tell me in this instance whether it is a usual practice to ask existing lender to let the house out? would it be then ok to revert to a standard mortgage?

thank you

GMS

If your income is sufficient to pass affordability with 2 mortgages then it is possible.

If not then the new lender would want to see the other property being let with the rental income covering the mortgage plus an excess, usually around 25% more.

You may have issues with renting to family.

Crosby

GMS, i dont want to let it. What I want is to fill a letting application with my current lender, get their consent, fax it to a new lender so that they approve the mortgage. Then once i moved into a new house I want to contact the first house lender and revert back to standard mortgage. Does this sound good?

GMS

Sounds like fraud. You cannot do this as you are blatantly lying to the lender.

If you cannot afford both mortgages you cannot have them. Fudging figures will lead to a nightmare.

Crosby

GMS wrote: »

Sounds like fraud. You cannot do this as you are blatantly lying to the lender.

If you cannot afford both mortgages you cannot have them. Fudging figures will lead to a nightmare.

Its not a fraud, but rather possible change of circumstances.

Rent existing house out, buy a new one, live in there with my mum, bang we fall out, she wants to move out back into our old house, where is the fraud?

I am not trying to be funny or fugde the legal side of things, I am trying to understand the concept of the matter, I am dealing with a broker who is suggesting this, surely they know what they are talking about. I am doubting hence I am asking you guys here.

Really appreciate your replies, really do