Help!

unsure1982

Would be very grateful for advice or clarification on the following.

I bought a property in Oct 2012 and took out a two year fixed rate. In August 2013 I decided to move in with my partner and I obtained from my lender a consent to let which I understand is for a maximum of two years.

I am now nearing the end of my fixed rate and my lender is offering me some very tempting new fixed rate deals. The interest rate is lower than the one I am coming to the end of. It will also enable me to shorten the term of the mortgage (by 8 years!) and build more equity which is great. I am able to secure a new fixed rate and this has no bearing on the consent to let currently.

However what I am unsure of is what will happen this time next year when, one year into my new two year fixed rate, my lender may request that I finish the consent to let (the two year limit of the consent will be up). They would want me to go to a BTL I am guessing and I have no problem with that however I am worried that I would then be liable for a redemption penalty?! I would be happy to stay with my lender and switch to a buy to let with them however I may still be charged a redemption penalty.

Any experience of this? I know that my other choice would be to change it to a BTL now however I am not named on another title/mortgage and to have a BTL it cannot be your only property.

ACG

Are you sure they would allow you to switch products whilst on CTL?

I would specifically ask that question and not assume they already know - having worked at various lenders it not always on the system the people on the phone use or not always simple to check.

unsure1982

I will make sure but they have written to me about these offers. Looking at other posts I have seen on forums other lenders have been ok with customers taking new products. Just have an impending feeling that I am going to have to go to the lender anyway. Worried in case it opens a can of worms!? But that said I have done everything via the corrects channels and haven't done anything wrong.