Opportunity to move to oz but mortgage company wont allow me to let property

socrates

neverdespairgirl wrote: »

I've come across several cases in which a mortgage holder is being prosecuted for getting out a residential mortgage with the intention of moving out shortly and letting it.

Which if you read carefully is not what is happening here and I also stated I do not agree with such practices - I even said so in a previous post - from #26.


"The banks are making their money back ten-fold and as legislation has been put in place to protect tenants - who are being evicted as a result of their LL's property being repossessed - due to non payment of the mortgage - not for not having CTL - then what excuse does a bank have for not granting CTL - if and only if there is a dramatic change of circumstances. Job abroad, redundancy, serious illness, death etc.

I do not condone people getting a residential mortgage knowing they are going to rent it out in a couple of months. Thats a completely different story."

Keep cutting that cloth all of you and keep thanking each other

jhxmt

socrates wrote: »

The banks are making their money back ten-fold and as legislation has been put in place to protect tenants - who are being evicted as a result of their LL's property being repossessed - due to non payment of the mortgage - not for not having CTL - then what excuse does a bank have for not granting CTL - if and only if there is a dramatic change of circumstances. Job abroad, redundancy, serious illness, death etc.

Sorry, I'm not sure I follow the logic here.

New legislation protects tenants if the property they're renting is repossessed due to the landlord not paying the mortgage, correct.

Surely, from the lender's point of view, that's simply one more reason to be sticklers about having Consent To Let? So that they're aware that the property is being rented out.

From a lender's point of view, having a homeowner who lets out their property is now even more of a headache (because if you stop getting your money, you've now got this pesky legislation protecting the tenant you didn't even know was there, so can't repossess). So naturally they're going to be more reluctant for that to happen.

Unless I'm misreading your post (which is a possibility).

Also, somewhere deep in the bowels of a mortgage lender, I expect that there's some poor sod complaining that their borrowers 'keep moving the goalposts' themselves!

I'm not intentionally backing the actions of the mortgage lender here - I don't necessarily agree with their stance, but I can see why they'd take it.

Thrugelmir

socrates wrote: »

then what excuse does a bank have for not granting CTL

No excuse needed. Any variation to the original contract, i.e. the offer by the lender to the borrower to be advanced funds. Is at the discretion of the lender.

PipPip

We were in the same position as the original poster when we moved to Paris a few years ago. Our mortgage was with Coventry Building Society, a tracker on base rate +0.85% so I really did not want to lose this deal. However, they were very good and gave us permission to let for up to a maximum of 5 years.

gerry_mc

The insurance company will not inform the Mortagage company. We are all now encouraged to shop around and get the best deals on insurance. So are we saying that every time I take out a new policy with a new insurance company they send a letter to my mortgage lender saying that they now are covering my building? Also now my old insurer is sending a letter saying that they are no longer covering me? 2 letters to a non existent department in a bank?

What then happens if my old insurer sends the letter before my new insurer sends it? I get put on the mortagage providers insurance while also having insurance with my new provider? In the event of a claim do you understand the problems that would cause?! It is so unrealistic!

It would cause you problems if you got caught. End of.

How many times have your mortgage provider popd in to see you are not renting the house out? None! As long as you can get the landlord insurance sorted without having a BTL mortgage sorted then you should be cool. Just try and rent to someone you know or trust. That will be the hard part!