Nationwide consent to let mortgage

bobsy

Hi,

We've been living outside of the UK for the past 2 years. Our UK residential home is currently let out on a 4 years lease. This is mortgaged through Nationwide on an approved consent to let agreement with them. In October this year, our fixed term product deal will end. I have a few questions that I'm hoping to get advice/clarification on here:

1) My understanding is that whilst on a CTL, we're unable to change mortgage product whilst the property is tenanted. I'm assuming this means that at the end of the fixed term deal, I won't be able to sign up to another fixed term product and will be switched to the Nationwide SMR rate. Is that correct?

2) Similarly, my understanding is that I'm unable to switch mortgage providers whilst the property is tenanted. Is this correct?

I can completely understand why Nationwide want to impose such restrictions but I'm also wondering on point 2 if that's even possible? If I am switched onto the SMR, I'm allowed to make unlimited overpayments and in theory can pay off the mortgage with no early repayment charges. As such, how does this differ from just switching mortgage providers and Nationwide being paid what is owed to them?

Look forward to any advice from people who have been in similar situations and can offer some guidance.

Paul

FBaby

If it's been 4 years since you've started renting, then you will struggle to get any residential mortgage with anyone and most likely that Nationwide will also say it is now time to get a BTL mortgage.

Is there an issue with you getting a BTL?

kinger101

(2). No. Just just wont get a residential mortgage. You need a BTL product. If you pay the mortgage back with your own money first, you still won't get a residential mortgage on a tenanted property.

bobsy

FBaby wrote: »

If it's been 4 years since you've started renting, then you will struggle to get any residential mortgage with anyone and most likely that Nationwide will also say it is now time to get a BTL mortgage.

Is there an issue with you getting a BTL?

I've never looked at a BTL before. I had just assumed the interest rates were way higher than a residential mortgage. However, having just looked, it seems that's the way to go with some pretty decent rates with our LTV.

Thanks!