Consent to let - Santander Flexible Off Set Mortgage

Jopag

Hi, We may need to rent out our home for a while due to a new job. This will be temporary but perhaps for 2 - 3 years.

We have a Santander Flexible Off Set Mortgage and meet the criteria of having had the mortgage for 6 months, not in arrears, both employed etc.

However I read that the charge is £295.00 when they give consent except for flexible mortgages in which case they advise you of the cost.

I know it will be more than the £295, due to the nature of the mortgage but does anyone know how much it will cost and if they are likely to give us consent without changing to a different deal?

If they don't give consent, do you know what they will suggest? Our LTV is about 70%. The amount of rent will more than cover the mortgage payment, by about £300.00.

If you need more info to answer just let me know. I wasn't sure how this consent to let worked, other than knowing we would absolutely need to have consent!

Thanks in advance.

Thrugelmir

Santander consider each application on a case by case basis.

Regarding flexible mortgages. Last month there was an instance where someone had been quoted £1,200. Which was around 1% of the outstanding mortgage balance.

Remember the rental income is taxable. Only the interest element of your repayment is deductible for tax purposes.

Will you need to employ a letting agent? This will absorb a high % of the rental income if you do.

Old_No.7

Hi there, we were with A&L, so Santander now, and we have been letting out our property for a few years now. The consent to let has always just been a formality, but the price has gone up (it used to be £125 for 3 years) and needs to be renewed yearly now. We didn't pay that much last time as you mention, but it might have gone up again (wouldn't surprise me...).

Normally they want you to include a paragraph in the rental agreement with your tenants, but for the rest, it's all easily arranged. Call them to see how much they charge: A&L didn't used to do BTL mortgages, so we never had any pressure to move to one of those, but we might get that now, I suppose. Sorry, not much help!

Jopag

Hi There,

Thanks for your replies - very useful. We will need to employ a letting agent and have spoken to a local one who seems very good. I agree that this and other associated costs will absorb lots of the rental income but as long as we break even we will be happy! It's not really a money making exercise, more covering costs to allow us to move for a while due to work.

I wonder what they look for when the look at each application for consent to let on a case by case basis?

We will budget for the 1% charge just in case...seems high but then if that's what it takes to get consent we will have to just go for it! The main thing is that we can get consent if you see what I mean because if they refused we would be in an awkward position.

Thanks again.

Degenerate

Jopag wrote: »

I wonder what they look for when the look at each application for consent to let on a case by case basis?

This is what I'm trying to figure out. When you get a quote, please tell us how much it is along with a few details such as outstanding balance, credit limit, outstanding term, LTV etc.

jameshampshire

Hi
I have a Santander flexible interest only mortgage at .05% over base so at present paying 1.05%. This is a great deal but will obviously increase as interest rates rise again.
I am looking at renting house for short term 1-2 years. Everything I look at from Santander is qualified by 'we have the right to change mortgage details' if we allow you to rent.
I am happy to pay their additional charges (ouch) but cannot afford to lose my present deal of +.05% over base if they decide they will change my mortgage for allowing me to rent.
Does anyone have experience of letting short term with this type of mortgage with Santander.
Thanks.

pcgtron

jameshampshire wrote: »

Hi
I have a Santander flexible interest only mortgage at .05% over base so at present paying 1.05%. This is a great deal but will obviously increase as interest rates rise again.
I am looking at renting house for short term 1-2 years. Everything I look at from Santander is qualified by 'we have the right to change mortgage details' if we allow you to rent.
I am happy to pay their additional charges (ouch) but cannot afford to lose my present deal of +.05% over base if they decide they will change my mortgage for allowing me to rent.
Does anyone have experience of letting short term with this type of mortgage with Santander.
Thanks.

So on one hand you have a great deal that you admit you know will go up and on the other hand can't afford for it to go up. If you can't afford the rise, you can't afford to do it

jameshampshire

Sure, I know at some stage as rates creep up i am going to have to pay more...no problem. What I dont want is for Santander to change my mortgage to full interest as soon as I rent.

Faceman98

I have a similar issue. I am on a flexible offset with Santander at 0.49 above base rate; so I'm currently pay 0.99%

The difference is I didn't get consent to rent and just moved and rented it out. I moved to London for work and couldn't do a commute but was worried that Santander would charge me silly money so I decided to take the risk.

Anyway, I'm looking to legitimise it now... basically carry on letting it but with consent to lend. I understand the risks in terms of the place burning down etc.

Does anyone have any recent experience or have any advice as to how I go about doing this? I am looking to buy a new home closer to London so no doubt my new lender will ask to see the 'consent to lend' confirmation.

Faceman98

**'consent to let'