Permission to let but want to change lender

marshall666

Hi

I am buying a house (offer accepted) with my partner, who owns her own place. She wants to let that property out rather than sell it when we move in to the new place. She has been living there for nearly 4 years.
She has a letter stating that she will be able to get permission to let from her current lender, albeit with a slight rate increase.
However, the standard variable rate she is on now is not brilliant and she'd like to change if possible.

Is she likely to be able to do this if after we sign up for the new mortgage, if she's already got the permission to let and is letting? I.e would a new lender require that the mortgage becomes a buy to let mortgage?

Or, if she changes lender before we sign up for the mortage on the new place, will she have to wait 6 months before asking that lender for permission to let?

Many thanks for your advice!

princeofpounds

Yes a new lender would want to consider it as a BTL mortgage. Those typically come with slightly higher rates (which you are experiencing anyway) and stricter LTV requirements.

However, they may be cheaper than staying on an SVR with a CTL rate premium on top, perhaps significantly cheaper.

If she changes lender first, the ability to ask for CTL and the terms on which it would be given (if at all) will depend entirely on that new lender.