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"Consent to let" - worst that could happen?
beatallica
Posts: 15 Forumite
So I am planning of buying a property in London (first time) and wondering what happens if I get, say, transferred abroad or because of personal reasons need to move to a different house. I would want to rent out the current property and move elsewhere and rent myself in that situation.
I have read around here and seems like worst that could happen is that the lender makes you pay buy-to-let interest rate rather than first-time-borrower interest rates. Which is fair enough but could they ask to put up extra equity as well? I.e. if I take the initial mortgage (buy to live) at 90% LtV and then move out after 1 or 2 years then could they ask me to reduce my then LtV to 70/75% ? As then I only see a forced sale as my only option to move ! Is that correct? Any other worst case scenarios?
Thank you !
I have read around here and seems like worst that could happen is that the lender makes you pay buy-to-let interest rate rather than first-time-borrower interest rates. Which is fair enough but could they ask to put up extra equity as well? I.e. if I take the initial mortgage (buy to live) at 90% LtV and then move out after 1 or 2 years then could they ask me to reduce my then LtV to 70/75% ? As then I only see a forced sale as my only option to move ! Is that correct? Any other worst case scenarios?
Thank you !
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Comments
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The worst case is that they could simply decline consent since they are it obliged to grant it at all.
In that case you could remortgage with a BTL provider but you may find that difficult if the LTV at the time is above 75%.0 -
OK but what if: (a) I lose my job or (b) Transfered abroad by my company
In above situations, if the bank refuses to grant consent to let and I do not have enough money for equity to be able to take out a BtL mortgage, do I become a forced seller then?
Thank you0 -
beatallica wrote: »OK but what if: (a) I lose my job or (b) Transfered abroad by my company
In above situations, if the bank refuses to grant consent to let and I do not have enough money for equity to be able to take out a BtL mortgage, do I become a forced seller then?
Thank you
Not really, you will still be liable to repay the mortgage every month whether you have a job or not or in the UK or abroad.
If you lose your job you will still have to find another one.....if you move abroad and cannot afford to pay the mortgage then I would of thought you would sell up if you are unable to let it."Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!0 -
On our website we have a list of how some of the major lenders handle consent to let.
PM me if you want a link to the page.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0
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