BTL urgent please help

Kcarr

Hello everyone

I moved abroad 2 years ago & instead of changing my mortgage to BTL then I made the terrible decision to just get a consent to let. My two years is up on that but I no longer qualify for a BTL because I now don't earn the minimum amount required by the bank.

I have a 35% LTV, & the rent more than covers the repayment mortgage. I have no other loans or mortgages & live mortgage free right now in Canada.

My dad thinks I should just carry on renting & forget about it, what are the consequences if I do that?

I don't want to sell as we might move back in a couple of years. I know there's probably options through mortgage brokers but I feel like that's going to be really expensive. I'm just so annoyed at the bank right now, we've had a mortgage with them for 10 years.

Thanks for listening and I would be grateful for any advice

Thrugelmir

What is your bank proposing to do?

Kcarr

Nothing, their advice is stop renting or sell

haras_nosirrah

There may be some options. I have recently completed btl mortgages for two seperate clients who were based abroad (one in Japan and one in Singapore) - this one would be one for a broker though as it is specialised lending

Kcarr

I haven't actually told them I'm abroad, I thought that was going to be a whole other hurdle to jump over, I was just trying to get through the minimum salary requirement first.

Is going through a broker expensive & complicated?

haras_nosirrah

It depends on the broker - as a guide we charge £399 on full mortgage offer (so nothing if you don't get an offer) - others will be more, others will be less

Kcarr

Thanks, I'm thinking I'm going to have to go through a broker I just don't have thousands of pounds to spend on fees etc

silvercar

Kcarr wrote: »

Nothing, their advice is stop renting or sell

Have they actually refused to extend the consent to let?

If you have a tenant in situ, I would remind the lender that the law requires that tenants have legal rights and can't just be thrown on the street. Even if the lender insisted that the tenants be given notice, this is only the first stage of an eviction process that can drag on many months.

See what they come back with.

Kcarr

Ok, thanks

I got a 12 month consent to let then they extended it another 12 months & at that time said they won't be extending further because they have a 2 year limit.

I really don't want to kick the tenant out, she's been there 18months & has been really good.

silvercar

Kcarr wrote: »

Ok, thanks

I got a 12 month consent to let then they extended it another 12 months & at that time said they won't be extending further because they have a 2 year limit.

I really don't want to kick the tenant out, she's been there 18months & has been really good.

I wasn't suggesting you kick the tenant out, I was suggesting you throw it back to the lender. In my mind the lender's options are as limited as yours. They know you are letting the property, tell them you have an existing tenant under an AST that you can't just kick out. See what their response is.