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Remortgaging under Consent to Let.

This forum has been a world of great advice over the years and I come again, cap in hand for some more.
I currently have a mortgage with Nationwide, split into 2 parts. I am looking to let out my property when I move in with my girlfriend in January. On reading hte fine print of the CONSENT TO LET form provided by Nationwide, there is a clause which states that whilst letting, you cannot change you mortgage product. This has been confirmed by them telephonically too.

Now my question is raised.... I take it that when my fixed mortgage product comes to an end in April next year, is it simply an easy task to remorgage with another provider with an immediate consent to let? Or aren't they generally unhappy to do this as you have no history with them?

I have been with Nationwide for a number of years and in that time, my LTV has gone from 95% to about 65% now, hence why as soon as my mortgage terms are up, I wish to remortgage for better monthly payments.

Any advise is greatly received.

Comments

  • If you have 65% LTV why don't you just get a Buy to Let mortgage?
  • Unfortunately as a first time potential landlord, I haven't done a huge amount of research into buy to let mortgages and hadn't considered this. I was led to believe that buy to let was more expensive... Would it ultimately be a lot cheaper?
  • I doubt it would be cheaper. You'd have to have a look into it.

    But your basically wanting a residential mortgage for a buy to let property.
  • When I took this mortgage out 2 years ago, the LTV was 84%.....currently with the property value increases, Im sitting at an 64%LTV. Now it makes sense to try and remortgage when my mortgage shifts to standard rate in a few months time.
    The problem is, Nationwide, whilst giving me Consent to Let currently, will not allow me to remortgage as part of their terms. First Direct and HSBC have just confirmed that they would not allow me consent to let, only Buy to Let. ...grrrrrr...
    So I guess it comes down to looking at the total fees and potential savings of a buy to let mortgage when the time comes to remortgage?
  • silvercar
    silvercar Posts: 48,662 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    I wouldn't worry about what title they give it - just look for the best deal you can. A residential let with temporary consent to let or a buy to let mortgage, doesn't really make much difference to you.
    I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, 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.
  • Hoploz
    Hoploz Posts: 3,888 Forumite
    Just get a BTL mortgage!
  • kingstreet
    kingstreet Posts: 39,116 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You will not have the option of a residential customer retention product while letting your property.

    Your options will be;-

    continued consent to let at whatever the lender's follow-on rate is, presumably 3.99% in Nationwide's case

    or

    remortgage to a new lender on a buy to let basis as residential products will not be available to you while the property is let.

    Consent to let is supposed to be a short-term way to let your property due to a change of circumstances, not a way to avoid BTL rates using them to minimise the (allowable) costs of what is a business proposition.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    wildcardsa wrote: »

    Now my question is raised.... I take it that when my fixed mortgage product comes to an end in April next year, is it simply an easy task to remorgage with another provider with an immediate consent to let? .
    No. In fact, I reluctantly say "Of course not."

    CTL is designed for home-owners who for various reasons (job re-location etc) have a temporary, unplanned, need to let their home.

    BTL mortgages are for people who know from the outset they intend to let the property, not live in it.

    If you switch to a new mortgage provider, you will be doing so knowing full well you intend to let. So you will have to apply for a (more expensive) BTL mortgage.

    If you stick with Nationwide, you can maintain your CTL until you change the product. At that point, again, you will need to declare you want the new product on a let basis, and they will require you to take a BTL mortgage.

    The only way to remain on a CTL basis is to make no change to your mortgage product.
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