Consent to rent - house purchase not final yet. Thoughts please?

Alphamare

My hubby and I are in the middle of buying our first home.
Our mortgage has been approved for a five year fox in nov last year.

We may have the opportunity to work abroad sometime between right now and four years time. We would not want to sell the house if can be avoided as may only be gone 5-10 years. Maybe forever. It would actually be to work on the yachts as he has family in that line of work.

We would still like to go ahead with the purchase as there is no guarantee that we will even get on board but it's likely.

Will we be a able to get consent to let?
Should we try fix for less time?
Our deposit is 10% but we plan to over pay.

I am happy to answer any questions and I really appreciate your knowledge and insight!

Alphamare

Anyone? Any thoughts at all? What would you be thinking of doing in our situation? Pull out!? What if we don't end up going? Although it is the plan!

Red-Squirrel_2

Alphamare wrote: »

Anyone? Any thoughts at all?

Its too early for most sane people to be up posting I bet. Give it a few hours and you'll have more responses.

HappyMJ

Flip a coin for your answer...could be yes could be no.

But...if it's no you can always remortgage to a BTL product. Most BTL products require more than 10% deposit though so I would buy the house based on the BTL approval crtiteria....i.e proposed rent to cover 125% of the interest charged..etc...

I'd fix for less time so you have no exit fees when you do decide to leave. If you fixed for 1 year you would have to live there for 1 year before leaving. If you think you might leave some time this year then I really wouldn't buy the property...if you really want the property then buy it as a BTL from the outset (but don't live in it as that would be in breach of the mortgage T's and C's).

Pixie5740

It very much depends on who your lender is and what criteria they have for granting consent to let. If you buy this house and apply for CTL almost immediately it will look like you bought the property with the intention of letting it out rather than ever living in it yourselves.

G_M

Alphamare wrote: »

Will we be a able to get consent to let? Depends on lender. See an independant mortgage broker and select one of the lenders more likey to agree to CTL

Should we try fix for less time?If you think this travelmight happen withi 4 years, yes.

Our deposit is 10% but we plan to over pay.

Bear in mind CTL is time-limited. Usually 1 or 2 years. some lenders will permit an extension (a further 1/2 years) but not more than once. Eventually they'll figure this is not a tempoaray arrangement, it's a BTL mortgage you need.

When you get to the letting stage, this may help:

* New landlords: advice, information & links

Alphamare

We already have a mortgage approved
The contracts are not yet exchanged but things moving along
We would switch to btl once we had 25% if it was going to be longer than 2-4 years and would move back after 5-10 years
But we may not go at all.

If we are in a fixed period, we can't get ctl?

We should just not buy a house for something that may not happen?

This is mse, I have seen things similar to this discussed at great length with all the pros and cons people had seen that the op may not have. I was honestly hoping for more info and opinions

G_M

Sorry - I really don't know what you expect. You've asked how CTL works, and been told.

As to whether you should factor this into your decison, well, only you know your situation:

* how keen/desperate are you to become a property owner?
* are you cut out to be a LL?
* how likely is this travel plan?
* how likely will it be within or beyond 4 years?

If you are in a fixed period, you are of course able to extracate yourlf.... at a price. Check the penalty for breaking the terms of the fixed deal.

as already advised, talk to an independant mortgage broker who can explain which lenders grant CTL and which don't. Which lenders have harsher Early Redemption penalties etc.

But only you know what you want to plan for.