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Consent to let from Mortgage Company
cakeforbrains
Posts: 608 Forumite
My husband lets out the flat that he used to live in and (better late than never) he's just been in touch with C&G to obtain a Consent to Let.
We were terrified that they'd either enforce a higher interest rate or charge us for the CtL, but they did neither. They said that their policy had changed and they were issuing 12 month CtL certificates with no charge or rate change.
This is obviously great (for 12 months) but does anyone know why the change of policy? Have all mortgage companies done this? And what is likely to happen at the end of the period?
We were terrified that they'd either enforce a higher interest rate or charge us for the CtL, but they did neither. They said that their policy had changed and they were issuing 12 month CtL certificates with no charge or rate change.
This is obviously great (for 12 months) but does anyone know why the change of policy? Have all mortgage companies done this? And what is likely to happen at the end of the period?
Grateful to finally be debt free!
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Comments
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How much equity do you have in the property? This is possibly the greatest factor in them having made that decision.
What happens at the end of the period? Who knows? Either you reapply for CTL and they grant it, grant it and charge you a whopping-great fee or they insist on converting to a BTL mortgage. You're paying a residential mortgage but after 12 months it patently won't be your home any longer.0 -
BitterAndTwisted wrote: »How much equity do you have in the property? This is possibly the greatest factor in them having made that decision.
What happens at the end of the period? Who knows? Either you reapply for CTL and they grant it, grant it and charge you a whopping-great fee or they insist on converting to a BTL mortgage. You're paying a residential mortgage but after 12 months it patently won't be your home any longer.
Probably about 20-25% equity.
The impression the guy at C&G gave my husband was that it was an across-the-board policy change rather than based on equity. They didn't ask him anything about the value of the property.Grateful to finally be debt free!0 -
Halifax did the same to my friend when he came off a fixed rate deal in April. They said that he would have to re-apply after the 12 months were up and I assume they won't let him stay on the SVR.
The only reason I can think that they are doing this is because they are too busy implementing MMR and don't have time to deal with CTL at the moment.0 -
The only reason I can think that they are doing this is because they are too busy implementing MMR and don't have time to deal with CTL at the moment.
I agree. Far too busy, and CtL means it becomes unregulated, so it is off the MMR radar.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
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Is your C&G mortgage one of those that transferred with the demerger of the TSB? As this would explain the new policy.0
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