Residential mortgage with another mortgage on permission to let

Optimisticred

Hello!

Can anyone help?
We have an existing residential mortgage that we rent out based on a permission to let from the Halifax. We lived in this house for 5 years before moving due to work. We doubt that we will move back into this house so as it stands we are simply renewing the permission to let annually ….if we ever get rejected on this permission request we will sell this house (which we don’t want to do) or try and get funds to increase the equity to meet the LTV buy to let criteria which is difficult as currently its equity is poor.

We want to buy a new house with a 10% deposit on a residential mortgage while keeping the 2nd house rented out on residential mortgage but on a permission to let. We have been told by Barclays and Santander we would need an 80% LTV for the new house on a residential mortgage due to risk while Nationwide want 85% LTV

Does anyone know of a mortgage provider that does 90% LTV??

NB. The rental of the 2nd house is all above board with correct tenancy agreements in place etc. We are aware of the increase in stamp duty due to buying a second home.

Thanks
David

ambc

Thought I'd jump in as I'm in a similar-ish position.

My fiance owns a mortgaged flat that she used to live in but has been let on a rolling consent to let basis for about 7 years now. We're renting at the minute. We currently have a mortgage application processing with Skipton right now at 90% LTV for a property that we'll live in. We've passed the DIP and affordability and are at the stage where we're providing documentation to support our (self employed) income. It's slow going, but seems to be moving in the right direction.

Above all, there hasn't been an issue with ownership of the existing property. At least not so far.

amnblog

Yes, there are few providers that will do 90% LTV on your purchase. Consult a good mortgage broker.

Markcroberts

We currently have a residential mortgage with permission to let with Nat West. The fixed term of the mortgage has come to an end. London and Country are telling me that as we don't live in the property they cannot find another lender that will take over the residential mortgage from Nat West with a permission to let. It is our sole owned property. Barclays said they would, but their underwriters have subsequently told L&G they won't. L&G have told me that they can't help, unless we want a Buy to Let Mortgage which is going to be conservatively another £100 a month more. This appears to be a bit of an issue, as once you have a permission to let it looks like it is not transferrable and of course you are in the hands of the lender in terms of retaining the permission to let. Thankfully, NatWest has offered alternative residential products, but the interest rates are not particularly competitive and of course they want a fee! I have spoken to a couple of other lenders, one or two have said they would allow a permission to let in our circumstances, but despite having an agreement in principle, L&G don't think we will be able to "get it over the line". If anyone manage to switch to a lender that is happy with permission to let on an existing residential mortgage, please let me know.

kingstreet

If NatWest will offer you a residential retention product while under continuing consent to let, snatch their hand off. No other lender is going to offer a residential product given the circumstances you describe.

Markcroberts

Skipton told me that they would not offer a residential re-mortgage on a property that already has a residential mortgage with a consent to let. If you manage to get it through, I would be interested to know. Thanks.

kingstreet

Markcroberts wrote: »

Skipton told me that they would not offer a residential re-mortgage on a property that already has a residential mortgage with a consent to let. If you manage to get it through, I would be interested to know. Thanks.

Skipton is the lender for their new residential purchase, not a remortgage on the existing.

Optimisticred

kingstreet wrote: »

If NatWest will offer you a residential retention product while under continuing consent to let, snatch their hand off. No other lender is going to offer a residential product given the circumstances you describe.

This is actually a separate point to my question. But yes as Kingstreet says snatch natwest hands off on that! Permission to let is very tricky!

Optimisticred

amnblog wrote: »

Yes, there are few providers that will do 90% LTV on your purchase. Consult a good mortgage broker.

Thats the route we are heading but out of interest do you know of any off the top of your head?

Thanks
David

amnblog

Yes I do know some 'off the top of my head', but Mr Regulator is waiting patiently to put me out of business if I suggest a Lender on this forum without knowing your case.

Optimisticred

amnblog wrote: »

Yes I do know some 'off the top of my head', but Mr Regulator is waiting patiently to put me out of business if I suggest a Lender on this forum without knowing your case.

Drop the sarcasm please.