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Consent to let or don't bother telling the bank?
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OK everyone - I'm getting a resounding 'tell the mortgage company your plans.' Message heard and that is what we will do and see what they say.
NB: we would never not take our loan seriously and would never put tenants at risk because we would always make sure the mortgage was paid.0 -
+ 1 here.haras_nosirrah wrote: »why not cancel the remortgage and get a 2 year interest only btl mortgage if you have the 25% deposit. then change to a residential when you get back. pros - done everything by the book and don't have to worry
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 -
I have been granted consent to let and it cost me £100. That was it, no questions. There are certain conditions that have to be met but they are fine. They haven't increased the interest rate.0
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How long had you had the mortgage?I have been granted consent to let and it cost me £100. That was it, no questions. There are certain conditions that have to be met but they are fine. They haven't increased the interest rate.
Probably longer than the OP, who hasn't actually completed yet.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 -
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kingstreet wrote: »How long had you had the mortgage?
Probably longer than the OP, who hasn't actually completed yet.
Fair point. 2 years and I do have quite a bit of equity. But even I expected to be hit with some penalty and have been pleasantly surprised.0 -
So who will be responsible for sorting out issues with the tenant while Youare away. Thinks always go wrong, maybe not big things but in my last year I have replaced a fridge freezer, had a gas leak from a hob that needed replacing, repaired a broken oven door, mended a power shower, done general maintainence between tenants. Things always happen!
Tenants do not always move out at the end of an AST, they also may not pay their rent. Letting houses is a buisness not something for the faint hearted.
So you are away, you have a mortgage to pay, your tenant ceases paying rent and may or may not respect your home, then what? Who sorts out the problems, who serves the notice, who goes to court to get possession back. Who finds a new tenant?
Sorry to sound pesimistic but you simply haven't thought this through, you have some 'pie in the sky' idea that you simply get a tenant and head off into the sunset, it just doesn't work like that!0 -
Thrugelmir wrote: »Who would be a point of contact for tenants, to handle maintenance issues ?
I get the impression that the OP hasn't really thought this plan though at all.0 -
haras_nosirrah wrote: »why not cancel the remortgage and get a 2 year interest only btl mortgage if you have the 25% deposit. then change to a residential when you get back. pros - done everything by the book and don't have to worry
Do this. If you take out a residential mortgage and 2 months later want CTL the mortgage provider is likely to take a very dim view of the request, probably won't grant it (I seem to recall reading that many providers insist on you living in the property for at least 6 months) and could ask for their money back instead.0 -
Of course we all know what you are proposing is "fraud".
However you mention you know plenty of people who have let their property whilst on a residential mortgage without problem.
You will read plenty of horror stories on here about the consequences, I once read that someone was sent to prison for perpetrating this crime....yeah sure they did.
Fact is 1000's are doing this without a problem, many are forced to do it by the inflexibility of their lenders.
Maybe take a chance.0
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