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Consent to let
Ciderarmy1987
Posts: 451 Forumite
Hi
we have found a house that we like and are looking at mortgages at the moment. We are both teachers and are buying well within what we can afford to pay each month and are looking at 85% LTV mortgages.
The problem that we are having at the moment is that we have in the back of our minds that we may (quite likely that we will) look to go abroad to teach in either August 2014/5 probably on a fixed 2 year contract.
How likely is it that we would be approved consent to let, and how big of a financial load would be put onto the mortgage.
For example one of the companies we are looking at is Coventry and they say this on their website:
CAN I LET OUT MY PROPERTY?
Yes, you may be able to let your property for a maximum of 12 months if you have a residential mortgage with us. Please contact us on 0845 7665522 if you would like to do this as you will need our written consent first. Please bear in mind that a fee of £100.00 will be charged for the work involved in processing and approving your application to let. In addition, the interest rate on all of your mortgage accounts (except secured personal loans) will be increased by 1% whilst the property is let. This will be removed once you have moved back into the property or you have converted it onto a Buy to Let product.
If you would like to let your property for more than 12 months, you may be asked to transfer onto one of our Buy to Let mortgage products.
What do people think about our options?
Cheers
we have found a house that we like and are looking at mortgages at the moment. We are both teachers and are buying well within what we can afford to pay each month and are looking at 85% LTV mortgages.
The problem that we are having at the moment is that we have in the back of our minds that we may (quite likely that we will) look to go abroad to teach in either August 2014/5 probably on a fixed 2 year contract.
How likely is it that we would be approved consent to let, and how big of a financial load would be put onto the mortgage.
For example one of the companies we are looking at is Coventry and they say this on their website:
CAN I LET OUT MY PROPERTY?
Yes, you may be able to let your property for a maximum of 12 months if you have a residential mortgage with us. Please contact us on 0845 7665522 if you would like to do this as you will need our written consent first. Please bear in mind that a fee of £100.00 will be charged for the work involved in processing and approving your application to let. In addition, the interest rate on all of your mortgage accounts (except secured personal loans) will be increased by 1% whilst the property is let. This will be removed once you have moved back into the property or you have converted it onto a Buy to Let product.
If you would like to let your property for more than 12 months, you may be asked to transfer onto one of our Buy to Let mortgage products.
What do people think about our options?
Cheers
Now buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/2103
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/2103
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Comments
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Make up your minds whether you are going abroad or not.
If you are then don't buy until you get back.
If you are not then go ahead and buy now.0 -
Halifax will stick you on a three year fix at 6%, Nationwide adds 1.5% to whatever rate you're on...
If you are serious about doing this, I suggest you research the implications of CTL in each case and settle on a lender whose terms appear to suit you best.
Worth bearing in mind, to remortgage onto a BTL, you'll normally need rental income to be 125% of monthly mortgage interest at perhaps 6% and to need to borrow no more than 75% of the property value.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »If you are serious about doing this, I suggest you research the implications of CTL in each case and settle on a lender whose terms appear to suit you best.
Worth bearing in mind, to remortgage onto a BTL, you'll normally need rental income to be 125% of monthly mortgage interest at perhaps 6% and to need to borrow no more than 75% of the property value.
All excellent advice KS, as ever; just want to reiterate to the OP that even if they make a decision on such research / info, there is absolutely no guarantee that their chosen lender will have the same terms in 2 years' time when they may wish to go abroad.0 -
Who is going to manage the property for the 2 years?0
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Not directly relevant to your question, but this post may also help:
New Landlords (information for new or prospective landlords)0 -
Hi
I hope someone here can help me too. In January I have to look for a new mortgage product as my existing one (with the Halifax) comes to the end of its term. There is a possibility, that after I find a new mortgage, I may want to let my house out. I gather that the Halifax will grant a CTL for 3 years, and that sounds pretty straight forward. However, my question is, if I don't go with the Halifax again, can anyone recommend a different lender which would offer a simple switch to CTL and/or good lending rates?
Thanks0 -
Hi
I hope someone here can help me too. In January I have to look for a new mortgage product as my existing one (with the Halifax) comes to the end of its term. There is a possibility, that after I find a new mortgage, I may want to let my house out. I gather that the Halifax will grant a CTL for 3 years, and that sounds pretty straight forward. However, my question is, if I don't go with the Halifax again, can anyone recommend a different lender which would offer a simple switch to CTL and/or good lending rates?
Thanks
As you've started a new thread (which is the best thing to do), I advise everyone to confine their replies to you onto that thread, to avoid duplication and also to avoid hijacking the OP's thread here.
https://forums.moneysavingexpert.com/discussion/44955070 -
Sorry - took me a while to work out how to post a new thread
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