which campany will allow consent to let without btl mort?

kingstreet

hotwheels wrote: »

Sorry i gave the impression that we want to re mortgage, however we will become 'accidental' landlords, not intentional-as a money making scheme ,as it is our home that we will be reluctantly letting out for a year or two to cover the mortgage, so we know that the repayments will be met. we will possibly be coming back to the uk after 2 years.

You have two choices;-

- remain with your current lender and request Consent to Let and if that is not granted

- remortgage onto a formal BTL product with your current lender or a new one.

The consent to let option only applies to the current mortgage with your current lender. There is no way to remortgage to a new lender on a residential basis to then request consent to let.

angelsmomma

[QUOTE=holly_hobby;60539479CTL is always for a temporary period - 3 yrs is circa the term when the lender will look for to you to return to the property as your primary residence, sell it, or if still let - change to a BTL (either with themselves of an alternative lender).

CTL is by express permission of the lender, there really isn't a minimum term before which it isn't considered, but unless there is an exceptional unforseen circumstance that could be presented to the lender if you've only been resident a short period - 6 mths plus, is really the minimum when the lender wouldnt consider your resi app to have had the intention of a back door BTL.

If your CTL request was refused, then yes you would need to tsf to a BTL mge to let, as to rent without the permission of the lender, would be in breach ofyour mortgage terms & conditions, which can result in their requirement of immediate repayment upon their discovery of the breach.

If you try and source an alternative BTL lender, whilst you are perm resident OZ, you will struggle, as you won't be classed as an ex-pat unless you have a determined date of UK repatriation with your employer, and are out there with your role with a UK or Multi National company.

So, if you think you're going to be out there a while, then I would source a BTLwhilst you are still perm in the UK (ie before you go out there).

You'll have to also put in place arrangements in your role as an absent landlord, together with consideration of your tax status and residency, and payment of taxation on net (of permitted allowances, reliefs and deductions) rental income.

Hope this helps

Holly[/QUOTE]

Hi Holly :wave:

Thank you for all your good advice to me previously. I just thought you might like to know that the highlighted has not happened in my case.

I have just received a letter from my mortgage company telling me they have reduced my loading interest rate and that "the consent to let and loading is in place indefinately and it is your responsibility to advise us when the property is no longer let,"

As you may remember I asked for consent to let and interest only then moved into my buy to let property 18 months ago They loaded the rate by 1% at the time but have now reduced the load to 0.3%

harpoboy

angelsmomma wrote: »

Hi Holly :wave:

Thank you for all your good advice to me previously. I just thought you might like to know that the highlighted has not happened in my case.

I have just received a letter from my mortgage company telling me they have reduced my loading interest rate and that "the consent to let and loading is in place indefinately and it is your responsibility to advise us when the property is no longer let,"

As you may remember I asked for consent to let and interest only then moved into my buy to let property 18 months ago They loaded the rate by 1% at the time but have now reduced the load to 0.3%

Great news! Well done

holly_hobby

Hi Angel !

Thats good news .... CTL (ie left on resi product terms) is really only ever a temporary measure aimed for accidental landlords, and its agreeance and continuance is as you can see really lender driven ....

SVR & loading (gen 1% - 1.5% for let property) is more akin to semi-commercial rates (not really CTL as discussed above), indeed there were recently a whole host of Lloyds group customers (whom generally have a 3 yr CTL term), who were being thrown off CTL and onto SVR & 1% loading (as you were exposed to), whom we most unhappy at the change. But given that some of them had been on CTL (resi product or svr with no loading) for several yrs (whilst some had only just hit 3 yrs), you can understand why they were shell shocked, but still had no grounds for complaint.

However, glad to see that your loading has been reduced from 1% to 0.3% - it all helps increase the net yield.

Well done and thanks for the update ...

Holly x