Natwest Remortgage - Consent to Let

pcgtron

Hi all.

I currently own a flat which I have on a Natwest Residential mortgage with consent to let. This has been active on a consent to let letter since January this year.

I have received a letter through the post from Natwest explaining to me that my fixed rate mortgage is coming to an end at the end of November and do I want to remortgage my property. According to the documentation, if I remortgage, it is on the same terms as I currently have, which would be a residential on a consent to let. I think there may be a problem with this as I'm sure the residential mortgages should only be available to people who are living in their properties and maybe the letter has not been flagged on the system (I have a copy of the consent to let letter at home so I am all above board).
I currently see myself having 3 choices. My LTV is 68%
1) Apply for a residential remortgage, which in my eyes would be mortgage fraud but Natwest's documentation suggest this would be possible. (Cheapest Monthly payment)
2) Apply for a Buy to Let mortgage with Natwest (Most expensive way of doing it)
3) Do nothing, I have a consent to let letter and go onto Natwest's variable rate (More than I currently pay but inbetween option 1 and 2 in terms of cost)

Does anyone have any suggestions. In my eyes, number 3 is the best option as I am not doing anything wrong in terms of the mortgage, but I am wondering why Natwest have sent me a letter offering me a residential remortgage when I am currently letting my property on a consent to let.

ACG

You could also get a BTL mortgage elsewhere... which taking into account the LTV might actually be better than option 2 and 3.

Alternatively, call up natwest just to confirm, as it could be something that is ambiguous? I used to work for RBS/Natwest and the amount of times i used to speak to people that read things one way when it was meant another was quite surprising... admittedly, some were trying it on and missing out important sentences before or after but it did happen. But you do have something in writing.

Thrugelmir

When does your Consent to Let term end?

Possibly this coincides with the end of the fixed term product.

pcgtron

Thanks for your reply. The problem with looking elsewhere for a Buy to Let mortgage is the product fees. They are anything from £999 to £2500 if I try and get a BTL elsewhere. Natwest would offer me a BTL mortgage with no product fee, which I think negates the increased cost of the mortgage rate. I'll don't think i'll claw £2500 fee back in reduced payments but I'll need to check.

pcgtron

Thrugelmir wrote: »

When does your Consent to Let term end?

Possibly this coincides with the end of the fixed term product.

There is no end stated on the consent to let letter

ACG

Not all of them do.
I had a client last week who wanted a BTL with no set up fees.

There were some available, but there were others with lower rates but a £99 booking fee for example.

Sit down with a broker, see what they can offer you, show them what you have and see if they can compete. It does no harm sitting down with one and it very rarely costs upfront. You may find they can beat it, you may find they cant but for an hour or so of your time it may save you a decent amount of money.

Thrugelmir

pcgtron wrote: »

There is no end stated on the consent to let letter

CTL is only ever granted on a temporary basis. Used to be 3 years in years gone by, unless there were extenuating circumstances.

Perhaps the NatWest are about to serve notice on you. As CTL is granted entirely at their discretion and on their terms.

bikeman17

pcgtron wrote: »

There is no end stated on the consent to let letter

I have the same letter which I have obtained last May when I renewed my product and obtained CTL.

There is no expiry date on the letter, however I did speak to them and they confirmed the consent is up to the end of the mortgage agreement, 33 years left!

I got another 7 months left on my fixed period, will see what they say when my renewal is due.