Consent to let Nationwide

Jo_ellie

Hi,

We have an appointment with a mortgage advisor soon to look at a new deal as our 2 year fixed is coming to an end but we’re thinking about renting the house out this year for a while. When I spoke to them last year they said that as long as nothing changes before we request to let then we would get permission. At the time she said changes such as payment arrears, which we don’t have. But we’re concerned that changing our deal now so close to requesting permission, in the next couple of months for the summer, will count negatively towards their decision.


Does anyone know if changing our deal will go against their decision to give us permission to let?

Thrugelmir

There's nothing to stop the lender loading the interest rate as a condition of granting CTL, i.e. adding another 1%, 1.5% etc to the rate you are paying.

pink_pirlie

I got consent to let with nationwide when I had a career break (aka running away from making change of career decisions).
They gave me 6 months with no interest loading and then 1% extra after that.
Ended up being let for 3.5 years during which time I was unable to remortgage as I effectively had no income and after I came back I didn’t earn enough due to the career change - so really consider the implications of moving out.

If you are coming to the end of your deal and are seriously considering letting it, it may be worth considering buy to let mortgages which could be cheaper than resi + loading - you’d need to look into that to see.

Why are you thinking about letting it out for only a short while?

Jo_ellie

We’re letting it out long term to pay off the mortgage, we’re moving into parents, but don’t have 40% equity yet to do a buy to let ... as most require.

pink_pirlie

Change your deal first bearing in mind you will be stuck with that rate long term as you won!!!8217;t be able to change your deal once the property is let and you will find it harder to get a buy to let later on if you aren!!!8217;t an owner occupier.

Thrugelmir

Jo_ellie wrote: »

We’re letting it out long term to pay off the mortgage,

Crunch the numbers and consider the downside risks. Letting property is not a guaranteed pot of gold.