Old C&G Consent To Let [CTL] letter

captain_skut

Hi,

I rented my house out for three years from 2010-2013 while working overseas. I have a letter dated June 2010 from C&G granting consent to let (if I remember correctly I paid abut 200 quid for the privilege). In the letter it explicitly states the the consent is valid for "the remaining term of the mortgage". I have not remortgaged or changed product since the letter was sent.

I now plan to move house and rent out my existing house. However, my mortgage advisor has suggested that the 2010 consent to let letter may not satisfy the new mortgage lender for the house I wish to buy and I may need a new consent to let or BTL mortgage. Just wondering if anyone has any thoughts or similar experience of letting their existing house in order to move.

dimbo61

" I now plan to move house and rent out my existing house "
So you now plan to change your HOME into a business ( Rental property) and you think C & G will be OK with that?
If you have enough equity you might be able to get a BTL mortgage and get some of the equity out of the property to put down as a deposit on your new home

silvercar

dimbo61 wrote:

So you now plan to change your HOME into a business ( Rental property) and you think C & G will be OK with that?

captain_skut wrote:

In the letter it explicitly states the the consent is valid for "the remaining term of the mortgage".

It seems they have already said they are ok with it, so I don't see why you need to ask again. Unless somewhere else in the letter it restricts you to when you are overseas or states that you can't buy another property for the CTL to remain valid.

mrginge

How long is the remaining term of your mortgage?
What does 'term' actually mean?
Full term? Fixed or discounted period?

captain_skut

I'm not sure what 'term' means either. It was a five year fix, but that has expired and I've never remortgaged, just stuck with the SVR. The CTL is not explicit - but I think 'term' would usually refer to the full 25 or 30 years it takes to pay off the debt.

I guess the issue is lenders used to give these letters out like candy but they are much stricter now.

dimbo61

You have consent to let but when buying another property your New lender may not be happy with just a CTL letter.
How much equity do you have in the property ? Could you move to a BTL mortgage ?
Are you on repayment or Interest Only ?
Are you a higher rate tax payer ( the tax relief on IO BTL Mortgages will only be 20% by 2020)

captain_skut

Yeah, I could move to a BTL if necessary but I don't want to, because that comes with fees and hassle. I have plenty of equity, but don't need to access it for the new house.

I guess the only answer is to try it and see.