Nationwide: change to buy2let

Saya3000

Hi there,

I would like to know if any of you have experience of (trying) to change their Nationwide mortgage to a buy-2-let with them?

How easy is this process?
How willing is Nationwide?
What are their expectations?

Also, if you have moved it, did you happen to take a repayment mortgage with them at the same time?

Thanks for your support!;)

kingstreet

You cannot change to a buy to let. Nationwide doesn't offer such products.

You may be granted consent to let, subject to a future 1% interest rate increase after 6 months.

cahillg81

Nationwide don't do BTL. You can apply to Customer Services for Consent to Let, depending on reasons that may be considered.

If you want a BTL mortgage it would be done through TMW - the mortgage works - and that is broker only.

*~Zephyr~*

cahillg81 wrote: »

If you want a BTL mortgage it would be done through TMW - the mortgage works - and that is broker only.

Is it?? I have BTL products with TMW and always deal with them direct.

kingstreet

*~Zephyr~* wrote: »

Is it?? I have BTL products with TMW and always deal with them direct.

Existing borrowers can do that.

New business with TMW is broker only;-

http://www.tmwdirect.co.uk/new-to-tmw

Saya3000

Ok, thanks for the advice.

To be clear, it is the consent I am after. How 'easy' is this to obtain? What are the eligibility criteria?

Also, if I want to apply for another mortgage, does this affect my affordability rating?

MortgageMamma

If you plan to let the property out long term it will need to be changed to a buy to let mortgage. Don't just go to TMW as it may not be the right product for you, and there may be more competitive terms available.

Consent to let is easy to obtain, most lenders allow this until the incentive period on your existing mortgage product expires i.e. you can remortgage to a buy to let without incurring early repayment charges. You will have to review your insurance for the property and look at taking landlords insurance policies.

When you swap to a Buy to Let mortgage the rent you charge for the property must be at least 125% of the mortgage payment

How it affects your ability to apply for another mortgage depends on the lender you want to move to. Your best option would be to take professional advice from a whole of market mortgage broker.

Saya3000

Thank you for the input.

With Nationwide, there appears to be some kind of strange rule where you have to have a tenant before they give consent.

Is this something you aware of? It sounds a bit as if they are asking me to resolve the chicken or egg question?:o

MortgageMamma

Not come across that before, but its been quite a while since I last used NW. Surely it should be more of a problem if you were applying for consent retrospectively.

Phone again and hopefully you'll get someone more knowledgeable!