Rental property NOT on buy-to-let mortgage

rich_b70

Advice sought, thanks in advance.

Just over two years ago we bought our new house, in which we now live. At the time we struggled to sell our old home, so we decided to rent it.

We advised the bank and they said we could continue on our existing mortgage for two years, i.e. we weren't forced into a buy-to-let mortgage.

Those two years have now passed, but the bank hasn't contacted us to move us to a BTL product. Given we are paying less than 1%, I am loathe to remind them.

What might our position be if they remember in a few months? What if they remember in a few years?

ShALLaX

Check your terms, you might find that getting consent to let is just a one-off charge rather than a change to your rates.

I suppose it's up to the bank as to what happens. As you're presumably in breach of contract in your current position, on the most extreme end of the scale, they may be able to terminate the mortgage and demand immediate repayment (unlikely). They're more likely to chase you for arrears of what you should be paying on a BTL mortgage. Could you afford to pay up if they suddenly asked down the line?

The honest thing to do is to abide by the rules. You know what you are meant to do.

shortchanged_2

Consent to let is usually a short term option as the OP stated for 2 years or so. If the OP wishes to continue renting out the property then they will need to go onto a BTL mortgage and the rate will definitely go up.

ACG

Who is the mortgage with? Some people may have experience with consent to let with that that company. Not all companies put a timescale on it.

holly_hobby

Consent to let as discussed is typically timebound by the lender to 3 yrs - obtaining CTL essentially means that you are in operating os of your residential T&Cs, albeit with the lenders tacit agreement.

If they have apparently chosen to maintain the CTL arrangement in excess of the initial stated period, then as its they whom are continuing to permit the resi terms breach, they're obv happy to continue as they are, and why rock the boat ?

Don't worry when they've had enought they'll let you know ... !

Until then, maintain your mortgage and keep under the radar, are my thoughts.

Hope this helps

Holly

rich_b70

Thanks for your replies. A real cross-section of opinions expressed.

We're still none the wiser though so if anyone reading this has been in a similar situation, or has a definitive answer, I'd be glad to read your view.

I also don't want to come across as coy, but I'd rather not mention the name of the provider.

Thanks again.

owitemisermusa

I've got consent to let from 2007 and recently spoke to my mortgage provider who said it was still in force.

My advice: keep your payments up to date, keep your paperwork and do nothing.

HTH.

GMS

rich_b70 wrote: »

I also don't want to come across as coy, but I'd rather not mention the name of the provider.

Then given that all lenders operate with different rules how do you expect to get an answer from somebody with a similar situation?

sockpuppet

Every lender is completely different, so it is unlikely anyone will have a definitive answer or be in the same situation unless we know which lender we are dealing with....
I could give you five different answers, based on criteria or experience with five different lenders


As said above by GMS!! you beat me to it!

Thrugelmir

What did the correspondence at the time say?

If it was for 2 years. Then any time the terms could be changed.
So better to be prepared than receive a shock.

owitemisermusa

Funny thing is, I don't think my letter was specific....

I'll check again, you guys have me worried.