What lender is best for CTL?

clairenw

Hi

I hope someone here can help me. In January 2014 I have to get 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?

What's the normal length given for a consent to let?

Thanks

Thrugelmir

You'll need to be with a lender for a minimum of 6 months before applying for CTL.

As a guide 3 years is considered the maximum by the majority of lenders.

clairenw

Thanks. If I stick with the Halifax and just get a new product with them, is there a similar 6 month wait?

Werdnal

CTL is not actually guaranteed with any lender, as you have to apply and they take every case on individual circumstances - ie loan to value, low long you have loan etc.

They may also add extra costs, up the monthly payments and stipulate who you let to (no benefits etc) or how much rent you can charge. They may also add a set-up charge, which can be due annually.

If you are looking to let longer term, you may find it easier and less hassle to consider a BTL deal instead.

Are you aware of all the other costs, legal implications and obligations of letting?

clairenw

If you mean tax and letting agent fees, then yes I'm aware of those... maybe you're right and I should look for a BTL. Any suggestions? Or is it too early to start looking? Thx

Werdnal

clairenw wrote: »

If you mean tax and letting agent fees, then yes I'm aware of those... maybe you're right and I should look for a BTL. Any suggestions? Or is it too early to start looking? Thx

Well yes, but also EPC, Gas safety cert, insurance to cover letting the property (normal household insurance is void if you are not living there), electrical safety requirements, deposit protection laws - just because you may consider using an agent, you as landlord would untimately be responsible for the property, safety of your tenants and ensuring all laws and regulations surrounding letting is observed.

Much to learn and lots to lose if you get it wrong. Read this:

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

If you are relocating, do you have enough income/savings to cover mortgage on the let, your own rent/mortgage, repairs and maintenance to the let property and lost rent if tenant stopped paying or you had voids in letting?