Can I keep current Mortgage if Let out property?

Rickb

Hi,

I've been trying to sell my property last 6 months with no luck so far and I potentially need to move for work in the next couple of months.

I have a mortgage with Nationwide that was a 5 year fix that expired last year and is now at a favourable BMR %.

I have a sizable overpayment fund on this mortgage that should be a decent deposit on a home.

My questions is:

Can I draw back my overpayment to use as a deposit on a new home and keep the existing mortgage on the old home if I let it out?

Or will the mortgage need to be changed to another product (I don't want this as it will be at a higher %)

I appreciate any comments from those in the know or have done the same.

Rick

kingstreet

Redraw any funds before you request consent to let. You can do this if your account was opened before 4 March 2010.

When you do that, a 1.5% premium will be added to the rate. This is still competitive when compared with an alternative BTL product.

Rickb

Hi Kingstreet,

Thanks for the reply.

Is it standard that they add an extra 1.5% to your mortgage to let it out?

I looked over the details on the mortgage and couldn't find any reference to letting out.

the mortgage was taken out in 2007.

Rick

Oxid8uk

I have a Nationwide mortgage, also taken out in 2007.

I gained consent to let in 2011. The 1.5% is added after 6 months and you are charged a £50 admin fee (added to your mortgage). My consent to let is only valid for 3 years.

I borrowed back my overpayments 4 months after I gained consent to let and had no problems.