Natwest Consent to Let terms

gorah

Hi everyone

I am buying a new house and hoping to get consent to let for my current property.

After discovering my current provider will allow consent to let with a 1.5% hike after 6 months, my mortgage advisor suggested the following.

Since I have not moved from the house I want to let YET (this should occur in 7-11 weeks) apply for a residential mortgage from Natwest and ask for consent to let within even a day or two of the deal going through. He has assured me this is no problem, he's done it with many clients and as recently as July.

When I rang Natwest, anonymously, to confirm, they were a bit cagey and said they would probably like to see at least a couple of months on the new mortgage; however the Natwest person reiterated that this was a recorded conversation and implied this was the advice they had to give.

I then went back to my mortgage advisor and he said: Don't worry. they will say you need two months if you give them this kind of hindsight, but if you go ahead and get the deal, then tell them circumstances have changed a few days after, and go for consent to let, as I've described you'll be absolutely fine.

Anyone got any thoughts on this? I've been told Natwest are the most lenient and, like I say, my mortgage advisor says he's done it for many people…

Also, if Natwest said no and insisted I moved to a buy to let product, would the same LTV and mortgage arrangement fees apply as if I were a new customer.

Thanks for any thoughts, particularly from anyone with experience of the Natwest in something like similar circumstances.

Cheers

Melly_Bobs

Hi,

How did you get on? Shame no-one was able to reply :-/

I'm thinking of doing this, and trying to do the research you were in August, and stumbled upon your post :-)

Hope your move went well, and your mortgage advisor was right

ACG

The answer to this is that you do it at your own risk.
I used to work for a different bank and if you requested consent to let within 6 months even longer in some cases they would refuse it. You then have a mortgage on a house you cant rent out.

BTL mortgage rates are pretty good at the minute so for the difference in cost i would just do it the right way.

kingstreet

ACG wrote: »

BTL mortgage rates are pretty good at the minute so for the difference in cost i would just do it the right way.

Assuming the OP has 25% deposit, of course!

I assumed the OP wanted a higher loan to value and a better rate...

FWIW I would not advise a client to apply for a residential mortgage, then immediately request consent to let. It's a bit too close to deception, for my liking.

holly_hobby

gorah wrote: »

After discovering my current provider will allow consent to let with a 1.5% hike after 6 months, my mortgage advisor suggested the following.

Since I have not moved from the house I want to let YET (this should occur in 7-11 weeks) apply for a residential mortgage from Natwest and ask for consent to let within even a day or two of the deal going through. He has assured me this is no problem, he's done it with many clients and as recently as July.

I really wouldn't rely upon what your broker has told you, given that CTL arrangements are essentially designed for accidential landlords. Whereby if you complete on a resi basis and almost immediately apply for CTL, this will reek of a back door Buy To Let app (which essentially it is) - and may be rejected on this basis .... as CTL is only ever at the complete discretion of the lender.

Knowing you are going to let the property out at the point of mortgage application, means your submission must be for a BTL mortgage NOT a residential one. Whilst the comments from your broker are really rather unsettling, given that they are actively encourgaging and advising you on how to submit what would essentially be a fraudulent mortgage application ..... which sounds harsh I know, but its pointless trying to be fluffy about it, when its a serious issue:).

Accordingly, my advice reflects ACGs, that given your known intention to let, you should only go down the BTL route (LTV permitting).

Hope this helps, with my comments only meant with best intentions for you .

Holly x