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Telling building soc that I intend to let my house

Laurence_WMF
Laurence_WMF Posts: 146 Forumite
edited 15 January 2015 at 1:58PM in House buying, renting & selling
Eighteen months ago I took out a small interest-only remortgage on my home, for less than a sixth of its market value. I am now thinking of letting the property. What do you think the building society's response would be likely to be if I inform them of this change?

Many thanks,
Laurence
«1

Comments

  • Alter_ego
    Alter_ego Posts: 3,842 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It doesn't work like that! You ask their permission.
    I am not a cat (But my friend is)
  • Laurence_WMF
    Laurence_WMF Posts: 146 Forumite
    Alter_ego wrote: »
    It doesn't work like that! You ask their permission.

    How do you think they would be likely to respond if I asked them for permission?
  • Tixy
    Tixy Posts: 31,455 Forumite
    Depends on the lender.

    They may agree, they may agree for a certain period of time. They may charge a fee upfront, they may increase your interest rate.

    They may say no and that you will need to change to a buy to let mortgage.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • vuvuzela
    vuvuzela Posts: 3,648 Forumite
    Laurence_WMF wrote: »
    How do you think they would be likely to respond if I asked them for permission?

    If you mention which lender, people here may have experience of their policies and give you an idea of how they normally deal with requests for CTL (consent to let).
  • Laurence_WMF
    Laurence_WMF Posts: 146 Forumite
    vuvuzela wrote: »
    If you mention which lender, people here may have experience of their policies and give you an idea of how they normally deal with requests for CTL (consent to let).

    Cambridge Building Society

    Thanks!
  • Tixy
    Tixy Posts: 31,455 Forumite
    This http://www.cambridgebs.co.uk/mortgages/useful-information-about-mortgages/tariff-charges
    suggests that they may consent for you to let it for a year for a £99 fee.

    Don't know if they may be more flexible in practice .
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Laurence_WMF
    Laurence_WMF Posts: 146 Forumite
    ^ Thanks ever so much Tixy, that 's really kind and helpful!
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    Alternatively, as it's already interest only and is for a small part of the value of the property, you could convert the mortgage to a buy to let (as Tixy says in post #4), and then you wouldn't be time limited in the way you may be with CTL.
  • Laurence_WMF
    Laurence_WMF Posts: 146 Forumite
    Thanks Agrinnall!

    Is it probable that they would agree to conversion to buy to let? Would the interest rate be much higher?
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Typically rates for BTL mortgages are higher than residential mortgages.

    Read also:

    New Landlords (information for new or prospective landlords)

     Letting Agents (Tips for selecting, and tips for sacking them)
This discussion has been closed.
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