How does consent to lease affect mortgage application?

taylor86

One for the brokers really or anyone with experience of this...

Me and hubby have rented out property and have consent to lease from Halifax. The rent is more than 125% of the mortgage payment and we have been told by Halifax that as this mortgage is now self funding we can apply for a residential mortgage subject to affordability and credit etc....

Does having a mortgage affect how much we may be able to borrow on a second mortgage? Are some lenders better for this scenario than others? I will use a broker when the time comes but at this stage I have no idea whatsoever what we could borrow on our income.

kingstreet

Consent to let and a buy to let are treated exactly the same way. If self-financing many lenders will ignore it.

Others will still tax affordability for a new residential with the possible cost of two mortgages and no rent coming in.

Finally, others will offer a reduced maximum loan to value.

Thrugelmir

taylor86 wrote: »

Me and hubby have rented out property and have consent to lease from Halifax. The rent is more than 125% of the mortgage payment and we have been told by Halifax that as this mortgage is now self funding we can apply for a residential mortgage subject to affordability and credit etc....

If there's no rental income. Then not only is the property not self financing. It will be a financial drain. So underwriters may well take a look at your overall financial circumstances in making a decision.

amnblog

Most lenders will be ok with this scenario.

jenik89

Hi there
I am in a similar situation. My husband and I have two mortgages which I believe would be classed as self funding- rent covers and mortgage and more. 150% ?
Do we declare the mortgage payments as an outgoing/outstanding debt or is it just cancelled out and we just go on our employment income.
I am looking to apply with santander or Nat west.

Many thanks
Jeni

amnblog

Each lender treats this scenario differently Jeni.


Santander have an annoying extra form and section on their affordability calculator called a retained property form.

roque112

Hi,
I'm also looking to remortgage from Santander to Natwest (to release some equity) and then get a consent to let for my existing Residential property.
I'm thinking to buy a new residential property using the released equity to pay towards the deposit.
So, would like to find out consent to let criteria for NatWest please, and how long is the consent to let valid for?
Thanks & regards
Roque

Let_Us_See

roque112 wrote: »

would like to find out consent to let criteria for NatWest please

Ask NatWest!