Consent to let

wheldcj

Help required!

We spent 6 months this year selling our property only for our buyer to request a £3k "bung" at the last minute to continue the sale. We refused and our chain collapsed.

We are therefore considering renting our property in 2013 and either raising capital to buy a second property or letting a property in our desired area and waiting for the market to improve (time of the essence for our rellocation because of schools!)

Our current Natwest tracker deal ends in April and last year Natwest said to me that there was no issue with offering a consent to let as our current property had been bought on the basis of living in it not "buying to let".

However I wondered what would happen at the end of my deal, would they force me into a buy-to-let or similar deal?

My question is, would be it logical to move to a 5 year fixed deal at 1/4/2013 therefore circumventing any potential to be moved onto a more expensive deal in the medium term. Or would fixing my mortgage one day and then asking for a consent to let later in the week be frowned upon?!?

holly_hobby

If Natwest are happy to agree to consent to let and leave you on your current deal without any loading (which is at their discrection) at the end of the product term you will move onto one of their BTL products (or SVR/BMR with a loading circa 1.5% as this has become semi-commercial lending).

You won't be offered another residential product at that point, as the property is no longer classed as residential lending due to the commercial aspect it now has (ie- it is become a commercial let).

You could of course choose at that time to remortgage to an alternative BTL provider (subject to status etc) - you will also find that the CTL arrangement will be periodically reviewed, as it is not designed as a long term solution, and they will probably look to move you onto a BTL product at around circa the 3 yr mark (if you still have CTL at that point).

So, if you do effect a 5 yr fixed, and seek CTL they may choose to add a loading to it either at commencement, or after the above pivotal period, or not at all .... it would be their decision and I'm afraid will be non-negotiable.

Hope this helps

Holly