Can you extend your mortgage term before requesting consent to let?

GIJosie

Hi all,

I'm in a bit of a predicament - bought a house 6 months ago, husband and I setup a business and are both directors. Only been trading for 3 months and now we need to move urgently (by April next year at latest) due to some unfortunate family circumstances.

Due to lack of provable income, as we've not been trading long enough to have any accounts, we're concerned if we sell this soon we a) won't be able to get another mortgage or port the mortgage over, or b) we will make a loss because of selling 18 months later (market value isn't increasing as we'd hoped).

So our plan was to let the house out and rent elsewhere. The problem is that we're on a repayment mortgage over 25 years, so as it stands the rental income wouldn't cover our mortgage payments.

We're with Nationwide, who do offer a consent to let application process, but at with a 1% increase to the APR, meaning an even bigger loss.

I did some maths, and if we extended the term to 40 years we should just about cover the mortgage payments.

So my questions are:

1) Would a previous extension to the mortgage term be held against us when we applied for consent to let?
2) Would we be able to extend and get consent all in one go? Or is it better to just extend now and get consent later?
3) Would any BTL mortgages consider us with such low LTV (paid a 10% deposit) and only a year of trading?
4) Would Nationwide port our mortgage over or remortgage us with only a year of trading?

Sorry for a longwinded thread opener, but thought it best to get all the facts across. Just wondering the best way to relocate without losing too much money!

If anyone has any experience of these various scenarios I'd love to hear your thoughts.

Thanks in advance.