We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Consent to Let not granted - what are the options?
Comments
-
A mortgage is merely a loan secured on a asset, as long a repayments are met, its highly unlikely any issues will arise, make sure you have LL insurance though.
I would agree with this, except that you have already tipped off the lender. So they will be on the look out. Real risks are an increase in mortgage rate imposed on you.
Swings and roundabouts, if they impose an increase then at least it means they have acknowledged that you are letting.I'm a Forum Ambassador on the housing, mortgages & student 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.0 -
Don't know, just like you don't know either.
I love it when people tell me what I do and don't know....
If they found out, yes they would take action. What action that would be would vary, at the lowest level it would be a higher rate on the mortgage, and the highest level a forced sale.0 -
Happy to pay the tax. How can I check whether the airbnb option would be in a breach of the existing mortgage?
Current LTV is a tad too high for switching to BTL, which requires at most 75% LTV.
If you live in a different area, how would you operate using airbnb? How would you check guests in and out if you are not living there? Cleaning? Changing towels and linen?0 -
The lender has more than 75% of the value of the property invested in the OP's home.A mortgage is merely a loan secured on a asset, as long a repayments are met, its highly unlikely any issues will arise, make sure you have LL insurance though.
If the OP lent some money to a friend to be invested sensibly and it was spent on a risky business deal would he be upset? I think so. At least he'd be wanting more interest to compensate for the increased risk.
As soon as the OP moves out he will be responsible for paying to keep two properties going as he will have his own new home too. Therefore his finances will be more stretched. The lender's risk increases as the chance of non payment, neglect or damage to the property will be higher than with an owner occupier. Why shouldn't the lender charge more and ask for the owner to have invested more due to increased risk.
If the lender follows this up once a tenant is installed the OP will be over a barrel as he hasn't enough equity for a BTL mortgage. Surely if the OP's let was a viable business the OP should be able to put in more savings to secure a BTL mortgage.
A workaround would be for the OP to keep his current home as his main home by retaining a bedroom there and returning regularly, take in a lodger and then get lodgings for himself in the new area.0 -
Whether OP lives at the property or not is quite separate from granting exclusive possession to a tenant.If the OP lent some money to a friend to be invested sensibly and it was spent on a risky business deal would he be upset? I think so. At least he'd be wanting more interest to compensate for the increased risk.
Very different situation. This is a mortgage, the debt is secured against the property.
IMHO, the potential additional risk with BTL mortgages really lies with landlords being spread too thin or not being able to cope if the rent stops coming in.
Here, their reason that the product is less than 6 months old is really a case of "the computer says no".0 -
It would be really helpful if such threads included the name of the lender and the kind of questions asked when CTL is requested.
It may not be of great help to the OP, but it may be of great help to future readers (and the brokers who post on here.)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.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.1K Banking & Borrowing
- 254.6K Reduce Debt & Boost Income
- 455.8K Spending & Discounts
- 247.8K Work, Benefits & Business
- 604.9K Mortgages, Homes & Bills
- 178.8K Life & Family
- 262.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards