Catch 22 on Consent to Let mortgage

orionsquare

I made an enquiry with my mortgage lender about seeking consent to let. They came back to me saying that I have to produce a signed tenancy agreement to them before they will consider giving their consent. My questions are:

If I sign a tenancy agreement with a tenant,
(a) would I not be breaching the terms of the residential mortgage?
(b) what if the mortgage lender refuses to give consent, can I sue the mortgage lender for the damages that I will have to pay for breach of contract with the tenant?

On the other hand, if I do not have a signed tenancy agreement, they will not agree to give their consent to let at all.

I think this policy is a bit daft. Any pointers from anyone as to what to do please? Thanks in anticipation.

fguk

Yes, sounds silly. I was screwed around by the bank when I was trying to get consent to let, and as it was part of our house moving plan eventually it was only possible by getting a proper buy to let mortgage.

I hope your experience is quicker and easier.

Alias_Omega

I had this with nationwide.

I ignored it.

somethingcorporate

I had this with BOI, equally ignored it.

I'd very much doubt once you have got a signed agreement that they would not give C2L.

It is totally bonkers though!

joelly

Yes this sounds daft to me too. Have you put these questions to them?

I also have a question and hope you dont mind me bumping onto your thread - I am waiting on my consent to let paperwork to arrive, but I am also holding viewings for potential tenants over the next few days. I was planning to not tell my lender but got concerned about potential implications of this and decided I would do so. Problem is I want tenants in in a weeks' time. I have had an informal arrangement with a friend 'minding' the place for the last 6 months but she has moved and I could really do with the the mortgage being paid by rental income.

My question is - I have read that commonly the terms include that the rent must be 125% of the mortgage payment. Mine will not be - rent is £550 and mortgage £505 - does anyone know if there is any way around this and will it prevent me getting consent to let if Natwest know of this? Do I have to provide them proof of the rental amount? I cant get any more rent for the property so not sure what I could do - maybe increase the term of the mortgage?

Has anyone seen the terms for a natwest consent to let recently?

Any thoughts much appreciated.
Thanks

Joelle

somethingcorporate

Not with Natwest but when we converted to C2L the 125% issue was not raised (and ours is only borderline).

The 125% tends to be for B2L underwriting and I think it refers to the interest only element of the mortgage.

joelly

Oh thats great, thanks, I will have my fingers crossed that it is not an issue but the paperwork should arrive any day.

If anyone has seen Natwest terms recently however it would really ease my mind to know as soon as!
Thanks

Joelle

joelly

Just a wee update in case anyone needs the same info - natwest conditions didn't have anything about the mortgage to rent ratio, it's all good!

And they seem to be saying I can be on the consent to let indefinitely as well, not bad for £100 fee.

Joelle