Residential mortgage with another mortgage on permission to let

Thrugelmir

Markcroberts wrote: »

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.

Consent to Let is technically granted on the basis of a temporary need to live elsewhere, i.e. overseas posting. During the credit boom era as with many aspects of mortgage lending. Lenders become lax and complacent. As it was all about "selling" as many mortgages as one could.

With tighter regulation and far lower profit margins. Given the exceptionally interest rates we have. Lenders will now be reverting to type. Policy rules have been reinstated and the excesses of the past gradually eradicated.

As you are not living in the property, it no longer qualifies as a residential mortgage as such. A new lender will place the business on their books for what it is, a BTL.

Thrugelmir

Optimisticred wrote: »

NB. The rental of the 2nd house is all above board with correct tenancy agreements in place etc.

Thanks
David

That's not the issue. Affordability is the key. Your ability to withstand financial shocks. Given you'll potentially will have 2 mortgages to service. Lenders have regulatory responsibilities too. No lender wants a repeat of the PPI scandal. By underwriting business they shouldn't.

Markcroberts

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.

Except Lenders tend to make an exception for armed services personnel, which covers one of us, but not the other.

amnblog

Markcroberts wrote: »

Except Lenders tend to make an exception for armed services personnel, which covers one of us, but not the other.

Regulator's don't.

Kingstreet is right here. You are fortunate to be offered options by Nat West.

Mortgages on residential property come in three forms:

1. Residential - you are in residence or intend to be
2. Consumer BTL - Let out or to be let out, but you or family used to live there
3. BTL - Bought to let out

Least expensive is option 1 which your situation does not match. Nat West are offering you as though it does.

silvercar

Thankfully, NatWest has offered alternative residential products, but the interest rates are not particularly competitive and of course they want a fee!

The other option is to stay on the NatWest SVR without choosing another fixed rate deal. That would come with the advantage of no fee to pay. Their current SVR is 3.75%.