Recent Consent to Let experiences

aksh99

Hi everyone,

I want to take out a 5 year fixed rate mortgage with my current lender, HSBC. However, there is a chance that I might need to go and work abroad in the next 5 years. HSBC cannot give any upfront commitment that they will agree to a consent to let on my mortgage, although I know that they routinely agree to 12 months. However, I may be in a situation where I have 2 years or more left on the mortgage and HSBC may not agree to give me consent for the full period. If they don't I would have to repay the early repayment charge and take out a new buy to let mortgage.

Does anyone have any experience of getting consent to let for longer than 12 months from HSBC or other lenders?

Also, does anyone's have any experience of switching from a fixed rate mortgage to a buy to let without having to pay an early repayment charge?

Many thanks!

glosoli

Can't you just make life easier for yourself and go for a shorter fixed product?

aksh99

Well obviously I'm considering that too. But interest rates are likely to rise in the next few months and who knows where they will go after that. So fixing for as long as possible is a good option.

Lilla_D

The difficulty is that you're asking for a crystal ball - lending criteria is a moving target, so whatever a lender stipulates today may change by the time you get to asking for a consent to let.

As a broker, I have come across lenders who give consent to let for longer than 12 months, but as above, these things always change, so it's not necessarily the rule to choose a lender by.

Re your final question - no, if you're in a resi fixed rate deal with ERC payable, then you cannot change to a BTL deal without paying the subject ERC.

aksh99

Thanks for your reply! I didn't realise that the goalposts can change so much but it makes sense. I think fixing for 3 years is probably going to be a safer bet for me.

Newtown

aksh99 wrote: »

Well obviously I'm considering that too. But interest rates are likely to rise in the next few months and who knows where they will go after that. So fixing for as long as possible is a good option.

Really ? Where did you read that ?

Interest rates are not going anywhere. (read somewhere that for every .05% increase in rates there is a % slowdown in GDP )

Rate rise is going to affect spending. less spending = less growth

its a catch 22 situation. (Rates rise means = higher mortgage payments = less disposable income )



https://www.ft.com/content/a01c421e-66cf-11e7-8526-7b38dcaef614#comments

The chances of a UK interest rate rise dwindled on Wednesday when Ben Broadbent, the Bank of England’s deputy governor for monetary policy, said he was!“not ready” to tighten policy.

Mr Broadbent was seen as a swing voter on the BoE’s delicately balanced Monetary Policy Committee. Until this week, his views on interest rates were unknown.

But his comments on Wednesday to Scotland’s Press & Journal newspaper all but eliminate the chance that a majority of MPC members will vote for a rate rise at the committee’s August meeting.

https://www.ft.com/content/a01c421e-66cf-11e7-8526-7b38dcaef614#comments