Remortgage rental property on a residential mortgage deal with consent to let

adeelmpk

I took out a 5 year fixed term residential mortgage deal with Natwest in 2012 whilst I was living in the property, couple of years after I decided to move out and converted into a rental property. At that point Natwest gave me "consent to let" and allowed me to carry on the existing 5 year fixed residential deal. The property has been a rental property since then and will continue to be a rental property in future.

Now that existing 5 year fixed residential mortgage is coming to an end. I spoke to natwest yesterday and they said that I can still go for a new residential mortgage deal and they will happily carry over my existing consent to let. I was under impression that when my existing residential deal expires, I'll need to switch to a BTL mortgage since it's a rental property. Why Natwest think that I can carry on renewing the deal using a residential mortgage product.

Secondly if I switch to another lender would they allow me to switch on to a residential mortgage [with consent to let] OR I will need to apply for a BTL mortgage.

ACG

I would double check with Natwest as I do not think that is correct.

If you switch to a new lender you will have to go for a BTL product.

adeelmpk

ACG wrote: »

I would double check with Natwest as I do not think that is correct.

That's exactly what I thought ! I did double check and next step is to book an appointment with mortgage adviser to apply for a new product. Of course it's good news for me as BTL rates are extortionate compared to residential products.

Natwest have been very flexible in past so perhaps its something specific with NatWest ? Would be keen to know if anyone else has been in same situation as mine.

TrickyDicky101

I expect it's more likely to be down to ignorance of whomever you spoke to. BTL rates are higher for a reason (as I'm sure you know). Hopefully the mortgage advisor you see will be more clued up as you wouldn't want it to get as far as underwriting before it gets declined for that reason.

adeelmpk

TrickyDicky101 wrote: »

I expect it's more likely to be down to ignorance of whomever you spoke to. BTL rates are higher for a reason (as I'm sure you know). Hopefully the mortgage advisor you see will be more clued up as you wouldn't want it to get as far as underwriting before it gets declined for that reason.

Just spoke to Natwest again and they confirmed I can definitely change the product and that's just natwest policy to allow to carry on the residential deals with consent to let. The best reason given to me is that since I started as a residential mortgage they'll allow me to do so.

The rates given me to are pretty attractive [compared to BTL rates] so I've booked an appointment with mortgage adviser for tomorrow do discuss further.

ACG

On a side note, are you aware about the upcoming tax changes on BTLs? (This would fall in to the BTL category). Soon you will need to pay tax on your income from the rent, rather than profit after deductions.

adeelmpk

ACG wrote: »

On a side note, are you aware about the upcoming tax changes on BTLs? (This would fall in to the BTL category). Soon you will need to pay tax on your income from the rent, rather than profit after deductions.

Yes very much aware unfortunately.