Consent to let denied

dancingfairy

Hi, are you sure you can't get a residential mortgage for yourselves for a new place? It depends on how much deposit and how much you earn etc. Yes a default isn't great but 4 years ago is getting on a bit. You might be able to get a mortgage but perhaps at s slightly less competitive rate? Have you been to see an independent mortgage broker? They can review the situation re a residential mortgage for a new place, should be able to give feedback on consent to let refusal and can also advise on whether you'd likely to be accepted for a buy to let mortgage with s different lender. You might find your current lender is particularly strict for some reason but others might accept you?
Best of luck
Df

G_M

I'm a little surprised.

If you've been there 3 years, then clearly you bought this property initially as a home, not an investment.

You now wish to let your home out, temporarily. That is precisely what CTL is designed for.

Halifax for some reason have decided it is now an 'invetment', as opposed to a temporary arrangement with your home, so yes, it could be something in the wording on your form......

Having said that, Halifax have no obligation to grant CTL - indeed some lenders never do. But from what the 'lady' initially told you, Halifax do have a CTL procedure but have decided it is not appropriate for some reason.

BISCUIT1

Hi, I'd definitely query/challenge their decision. I applied for CTL with Woolwich and they initially turned it down..different reason as they said the rent would not cover my mortgage payment..they hadn't factored in that at that time I was overpaying so my actual required payment was easily covered..when I queried it and pointed this out they gave me the CTL..so would be worth a go..

Thrugelmir

CTL is for people who are temporarily residing elsewhere, i.e. overseas posting. Not a facility to aid house moves and circumnavigate issues. There' no possibility that they'll grant permission when you have no intention of returning to the property. For a period of time lenders were lax. No longer.

CTL is granted entirely at the lenders discretion , i.e. internal lending policies. So no right of appeal or grounds for complaint.

Cakeguts

Are you saying that if you let the property and the tenant doesn't pay the rent you can afford both the mortgage on that and the rent on the new place? If so why don't you just stay where you are put more into your savings to make a bigger deposit on the new place?

sniggings

Cakeguts wrote: »

Are you saying that if you let the property and the tenant doesn't pay the rent you can afford both the mortgage on that and the rent on the new place? If so why don't you just stay where you are put more into your savings to make a bigger deposit on the new place?

Cos they need more space now.

The OP hasn't mentioned saving for a deposit?

sezzybell

Thanks everyone! X

Generali

Banks have to put aside more reserves for BTL mortgages than OO ones which might explain the bank's decision. They can't afford to give too many CTLs on OO mortgages.

I guess OP has 3 choices:

1. Appeal the decision
2. Go elsewhere and get a BTL mortgage and rent
3. Go elsewhere, borrow against some of the equity in the property and use that as a deposit on a more suitable place while getting a BTL mortgage on the existing home

Bear in mind that under the new SDLT rules #3 will incur extra stamp duty.

AdrianC

Generali wrote: »

I guess OP has 3 choices:

1. Appeal the decision
2. Go elsewhere and get a BTL mortgage and rent
3. Go elsewhere, borrow against some of the equity in the property and use that as a deposit on a more suitable place while getting a BTL mortgage on the existing home

4. Sell this flat.
5. Continue to live in this flat.

camptownraces

Generali wrote: »

I guess OP has 3 choices:

1. Appeal the decision
2. Go elsewhere and get a BTL mortgage and rent
3. Go elsewhere, borrow against some of the equity in the property and use that as a deposit on a more suitable place while getting a BTL mortgage on the existing home

Bear in mind that under the new SDLT rules #3 will incur extra stamp duty.

There's a fourth choice:
4. You would like more space, but it won't be easy to arrange in these circumstances. Become very organised, both of you, and work out how the stressors can be avoided. Parenting classes might help if you can't work out how to deal with the kids. Alternatively, look into the possibility that you may have postnatal depression, and see your GP.

Perhaps you are in a studio flat, which wouldn't be great with two young children. But people have got through worse, and it sounds like you have your own kitchen and bathroom.