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Unauthorised consent to let
HanB_2
Posts: 3 Newbie
Hi there
Hoping someone can help. I'm planning to rent out my property in order to move in with my boyfriend (who is buying a house mortgage-free). Having spoken to my mortgage provider (Platform), they have told me that I could switch to a consent to let mortgage, where they will add on an extra 1% to my fixed rate interest (3.9% up to 4.9%).
However, they also require a minimum rental income of 125% of the new monthly payment, which is more (about £100/month) than I could let it out for. So they have told me I could have an 'unauthorised' consent to let mortgage, because I do not meet their criteria. This will incur a variable interest rate rise (currently 1%).
I'm a bit wary of the term 'unauthorised' and wondered if I have any other options. If I re-mortgage will I have to get a buy to let?
Hoping someone can help. I'm planning to rent out my property in order to move in with my boyfriend (who is buying a house mortgage-free). Having spoken to my mortgage provider (Platform), they have told me that I could switch to a consent to let mortgage, where they will add on an extra 1% to my fixed rate interest (3.9% up to 4.9%).
However, they also require a minimum rental income of 125% of the new monthly payment, which is more (about £100/month) than I could let it out for. So they have told me I could have an 'unauthorised' consent to let mortgage, because I do not meet their criteria. This will incur a variable interest rate rise (currently 1%).
I'm a bit wary of the term 'unauthorised' and wondered if I have any other options. If I re-mortgage will I have to get a buy to let?
0
Comments
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So an 'authorised' CTL will cost you an extra 1%?
And an 'unauthorised' CTL will cost you..... an extra 1%? The same? Or in addition?
I also fail to see how they can knowingly charge you extra and claim it is unauthorised.
You will not get a BTL elsewhere - most (all?) lenders will want rent = 125% of the paymets.
Are you sure you can afford to start this business? How will you pay the mortgage if you get the tenant from hell.......?
[FONT="]New Landlords[/FONT][FONT="] (information for new or prospective landlords)[/FONT]0 -
What a weird concept... "unauthorised consent"...Let's settle this like gentlemen: armed with heavy sticks
On a rotating plate, with spikes like Flash Gordon
And you're Peter Duncan; I gave you fair warning0 -
Thanks. At the moment the interest rate rise will be the same, whether it's authorised or not. The difference is that the unauthorised rate is variable, they have the right to raise it further at any time.
I am equally confused about them increasing my rate and yet calling this unauthorised. Are there other options when the market rental prices are not going to meet 125% of the payments?0 -
It is the same as an unauthorised overdraft - they have you by the man vegetables.
Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0
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