consent to let

Old_Git

I am in the process off buying a house .I dont need a mortgage however I am considering renting my existing house .
I have a mortgage with woolwich /barclays .
Is this transferable ?and if so will I be allowed to keep the same rate. The rate is 0.68% which I am reluctant to loose

holly_hobby

Only your lender can tell you if they will provide consent to let (which is a temporary arrangement, and reviewable), to which if they do, I would guess given the very low rate you are currently enjoying, they will put a loading onto this - to make it more akin to semi-commerical rates (which is what the mge will have technically become if its commerically let).

They may of course, refuse consent to let completely and advise that you will need to switch onto a BTL mge product with them.

You'll have to ring them to establish what their stance will be, and come back to us for further guidance if needed.

Hope this helps

Holly

motch

Old_Git wrote: »

I am in the process off buying a house .I dont need a mortgage however I am considering renting my existing house .
I have a mortgage with woolwich /barclays .
Is this transferable ?and if so will I be allowed to keep the same rate. The rate is 0.68% which I am reluctant to loose

0.68% you lucky $%&%$! :j

MinMoz

I was granted consent to let around 4 years ago with a Woolwich tracker on the same rate as yourself. Provided they have not changed their approach then you should be ok.

bigadaj

Would it be easier to port your current mortgage to your new house and then get a buy to let on your current property. This would retain your rate, use the cash from your new property as a deposit for btl. The rate on the btl would be higher but as this could be offset against tax then it may not be that important.

holly_hobby

At such a low (and now probably a loss leading) rate and depending upon the remaining term (if not a lifetime tracker), they may well refuse even a resi port request (assuming his status and income is sufficient for requirements) .

Minmoz, what an absolutely fantastic result for you ..... I am astonished that they permitted a rate less than 1% on a semi-comm arrangement, but nevertheless that was wonderful for you (albeit the rub being the tax liability will be higher as a result).

Anyhoo, hope this helps

Holly

brians_daughter

my property is currently on consent to let with the woolwich at (i'm 99% sure) 0.59% above base. They granted it in December last year, so unless anything has changed very recently it should be doable.
The consent to let is for 2 years.

holly_hobby

Thats all positive for the OP, hopefully they'll still have the same approach !

Only a call to them will tell .... keep us updated OP

Holly x

Old_Git

yes I can transfer it but they wont let me do interest only which is what I have now.
so my mortgage will increase from £27.99 to £330 .I currently owe £49,000 but £40,000 is tax deductible .
I do have the cash to clear the full mortgage but the interest on the savings is more than the interest on the mortgage ,so it looks like the purchase is on but the move is off .

holly_hobby

The mortgage interest relating to the total loan (when it entered let) is tax deducatable - so if your current mge is 49k, then 49k of related mge interest is a permitted deduction*.

If you want the mge left on interest only (and your lender is refusing this under CTL), then you would need to transfer to a buy to let mortgage (where as unregulated lending, its perfectly permissible), and of course sacrifice the current low rate you're on. But it should also be considerd that the lower the chargeable interest rate, the greater the overall yield and the higher the tax liability .... so it swings in roundabouts TBH.

Any costs involved in trasferring your mge either on to CTL, or via a remortgage onto a BTL mge, are also tax deductable from gross rental income/cgt on sale.

(* deduction of total mge interest against rental income, is capped at the property value when it entered let).

Hope this helps

Holly