Applying for a new mortgage with existing consent to let

jambajuice

When my wife and I relocated we obtained a consent to let from our lender and have been happily renting out or old flat since. This flat has been rented out for almost two years and is self funding.

Now we want to buy a family home in our new location (also UK I should add) but want to keep the flat as is on consent to let.

Has anyone applied for a mortgage with similar circumstances? Keen to know how you got on.

Also does anyone know how various lenders regard such a situation and how they take it into account when deciding if they will lend and how much they will lend.

To pre-empt the question: we are not looking to convert the flat to a buy to let mortgage as that would require a much higher LTV and we can't afford that deposit plus a deposit on a new home.

The second question answered: we're not selling the first place because we'd incur a loss by doing so, thus taking from our deposit for a new home.

Any helpful advice greatly appreciated!

Dave_Ham

You almost answered all of your own questions...

It will be easier to get the next mortgage in quite a straightforward manner, than trying to get your consent to let extended...

Be very careful many of the lenders are hitting this area hard and not renewing or certainly not on the same terms..

Aside from that, most banks are ok with this and any self respecting broker will do this easy...

Good luck

holly_hobby

This shouldn't be a problem, the let property is self funding - and as long as your income and credit score satisfy the new loan you want, you will qualify for what is effectively a Let To Buy arrangment (ie the lender effectively ignoring the existing mge arrangement).

Some lenders want proof that the existing lender knows the property is let, and proof of rental income - some don't bother as long as the their mge will be on your primary residence, and your status meets their underwriting criteria.

I would suggest an appointment with a whole of market broker, to save the leg work in sourcing the most approriate lender and deal - who will support you thoroughout the application process and beyond - but this will be an easy case for them !!

Hope this helps

Holly

holly_hobby

As DH says, CTL is a precarious arrangement - at some point your existing lender will want to change this to BTL rates (prob SVR & a loading rather than a product), or advise that the mge just be moved if they don't offer BTL arrangements at all.

So bearing in mind your comments re the current LTV being too high for a BTL mge - it wouldn't be a bad idea to try and reduce some of the borrowings to place you in a more favourable position, should the existing CTL lender pull the rug on you and you need to find a new BTL lender.

Holly x

Thrugelmir

Who is your current mortgage lender?

jambajuice

Thanks all, this is all very useful.

The question is really around a new lender and how they will treat the application for a new residential mortgage.

Current lender (who will remain nameless) has been very accomodating with consent to let and granted it two years running. I don't see any issues with getting another years CTL. They were more than delighted to grant it last year and even left the rate the same which was fantastic.

Dave_Ham

jambajuice wrote: »

Thanks all, this is all very useful.

The question is really around a new lender and how they will treat the application for a new residential mortgage.

Current lender (who will remain nameless) has been very accomodating with consent to let and granted it two years running. I don't see any issues with getting another years CTL. They were more than delighted to grant it last year and even left the rate the same which was fantastic.

Is the lender your Mum or Dad?

holly_hobby

Dave_Ham wrote: »

Is the lender your Mum or Dad?

Naughty boy .. you did make be giggle .. :D

H x