First Time Buyer to Consent to let

andreiv

Hi all. I have recently taken a 5 years fix term first time buyer 60 LTV mortgage from Barcla y s. After living two months at the one bedroom apartment I was offered a much better paid 1 year fix term contract with great career progression opportunities, but requires me to relocate and rent a place. I am asking for your feedback on what I should do and the risks associated:

Option 1(Tell the truth): I fear that telling my bank about the chance in circumstance will mean in best case paying the full early repayment fee and moving to a higher interest buy-to-let mortgage or in the worst case have the bank call in the loan as my job now is temporary and I have moved out of the house so soon.

Option 2 (Consent to let) I also understand that there is a consent to let for which I can show my temporary 1 year contract and declare that I will move back in the apartment. The chance of me returning to this apartment is slim as the one year contract will likely lead to a full time job.

Option 3 (Rent a room) I have received some advice of keeping my main residence address across all my records (banks, utility companies, employer, electoral roll, driving licence), but asking for a consent to let and advertising as a flat share for a lodger under the rent a room scheme, while privately informing prospective lodger that I will not live at that address. It may also raise red flags to the bank as sharing a one bedroom apartment is unusual.

Option 4 (No contract) Finally, I was advised to let it out to my friend for free and inform the bank that I and somebody else will be leaving at that property. He needs to be on the council tax and electoral roll. My friend has a holiday home which he can let to me for free.

Additional questions:
1. What do you recommend me to do and what are the advantages/disadvantages?
2. Do you have any experience with Barclays? What are their fees/consent to let conditions?
3. If all my records show that I live and pay all bills at my main residence how likely is for somebody to find out that I am not leaving there? Can the logger blackmail me and say that they will tell the bank I am not leaving there? Do banks or councils send somebody at your door to check? What are the consequences if the bank finds out?
3. If I need to advertise online is there a way to word it so that I am 'sharing' a flat that I don't live in? If I must announce the bank, do I tell them after I found somebody or before?

Thank you for all your advice!

amnblog

Barclays will generally accept consent to let for a two year period or less, no problem, and no extra charges. I would not expect them to ask for any evidence of your contract.

What they don't want to hear is that it is a permanent situation.

Letting the property without the lenders knowledge is not helpful if you later have problems with the tenant.

Thrugelmir

Lender might wonder what you knew just 2 months ago. Seems as if your personal circumstances have changed overnight.

amnblog

A bit like working for 'The Donald'

sevenhills

andreiv wrote: »

Option 4 (No contract) Finally, I was advised to let it out to my friend for free and inform the bank that I and somebody else will be leaving at that property. He needs to be on the council tax and electoral roll. My friend has a holiday home which he can let to me for free.

If you are not going to be honest, and you trust your friend, that sounds ok. You could stay on the electoral roll.