Santander From Consent to Let to Buy to Let RAte

sitesafe

Hi

Just wondered if Santander choose to use their right to change the rates of a residential mortgage that has just been approved for Consent to Let at any time, onto 'rates equivalent to their Buy to Let product'....

bigadaj

Depends what they say in their terms and conditions, logically you should be on this for between one and three years, after which it is definitely a business and buy to let rates will apply.

holly_hobby

There have been numerous recent threads on CTL to BTL.

Once you are on a CTL arrangement (ie commerically renting your property prev your main residence), you are operating your mge outside of the terms of the original residential arrangement you held (albeit with the lenders tacit agreement - which is purely at their discrection, and does not come with a standalone CTL contract or revised T&Cs )

This means that the lender may apply interest rate chages and loadings as per their wishes and in line with any BTL BMR they market, as in essence your mge has transgressed into semi-commerical borrowing.

A typical CTL arrangement (where you are left on resi rates) can last upto 3 yrs - BUT - this varies between lenders and is not a formal rule or regulation.

Indeed we have just a chap who has had a CTL for 2 mths, and is already being loaded by 1.5% (aka semi commerical loading).

So, you will just have to suck it an see .. but if/when you are advised of a loading, don't take it personally, its standard practice ! (you may at that time wish to see if you can beat the deal by sourcing a specific BTL product)

Hope this helps

Holly

sitesafe

holly_hobby wrote: »

There have been numerous recent threads on CTL to BTL.

Once you are on a CTL arrangement (ie commerically renting your property prev your main residence), you are operating your mge outside of the terms of the original residential arrangement you held (albeit with the lenders tacit agreement - which is purely at their discrection, and does not come with a standalone CTL contract or revised T&Cs )

This means that the lender may apply interest rate chages and loadings as per their wishes and in line with any BTL BMR they market, as in essence your mge has transgressed into semi-commerical borrowing.

A typical CTL arrangement (where you are left on resi rates) can last upto 3 yrs - BUT - this varies between lenders and is not a formal rule or regulation.

Indeed we have just a chap who has had a CTL for 2 mths, and is already being loaded by 1.5% (aka semi commerical loading).

So, you will just have to suck it an see .. but if/when you are advised of a loading, don't take it personally, its standard practice ! (you may at that time wish to see if you can beat the deal by sourcing a specific BTL product)

Hope this helps

Holly

Thank you for the information. I didn't manage to send the full post in the original message but have sent a duplicate somewhere with more detail which relates to this:

I am on a 5 year fix residential mortgage with Santander at 4.99% and I also have Consent to Let.

Terms of the CTL state that at any time Santander reserve the right (once property is let) to vary the interest rate and t & c of the mortgage to match those of their EQUIVALENT BTL loans. As I am on a 5 year fix and Santander do not do a 5 year fix BTL any more then I wondered if anyone had any idea of what the 'equivalent' product might be as at the moment I can only see they do 2 year BTL products.

Just wondered, short of having to phone Santander, if anyone had any experience of this.

Thank you

holly_hobby

Nothing like getting if from the horses mouth ... ring them (first thing I would do myself), as any advice or guidance on here is for information only, which means that one persons experience may not match how the lender administers your loan.

H