Moving Abroad - Consent To Let Refused

Abravo

Hi all,

I've recently been offered and accepted a job abroad. I've had a residential mortgage for over a year and recently requested consent to let - which was denied.

The main reason given was that the loan to value amount was insufficient, currently around 80% combined with the fact that they feel the rental income would not be insufficient (even though rental income = 200% of monthly mortgage payments.)

The plan would be to move abroad for 12-24 months, something I told the lender. I am now seeking advice on what to do. I was very surprised to be refused consent to let as I was led to believe that moving abroad represents a pretty legitimate reason!

Many thanks to anybody who has any advise to share.

AnotherJoe

You could investigate getting a BTL loan from the same provider or different.
Also, do they have an appeals process?

theartfullodger

Simple: Remortgage on a buy-to-let mortgage with another lender or reduce amount of existing mortgage (pay some off..) to come within current lender's guidelines.


I would expect a lender to have different criteria for residential & BtL mortgages, nothing to be surprised about.

agrinnall

If LTV is 80% then you may find it difficult to get a BTL anywhere. If you can't your options are probably sell, leave empty (but watch the insurance) or have somebody move in without paying rent (that may also not be allowed by your mortgage provider).

G_M

Abravo wrote: »

.....

The main reason given was that......combined with the fact that they feel the rental income would not be insufficient.....

Very strange reasoning!

The main reason given was that the loan to value amount was insufficient, currently around 80%

That's understandable for a BTL mortgage, though some lenders woud not insist on BTL criteria for CTL. Who is the lender?


Leaving the property empty is expensive, and risky (insuramce, squatters, delapidation going unnoticed etc)


Putting friends/family in there rent free probably breaches the residential mortgage contract.


Selling is expensive if you'd buy back into the market after 12 months (unless Brexit causes a house-price crash in between - could be a smart move!)


Reducing the loan is best way forward if you have some ££ to throw at the mortgage.

k3lvc

Abravo wrote: »

The main reason given was that the loan to value amount was insufficient, currently around 80% combined with the fact that they feel the rental income would not be insufficient (even though rental income = 200% of monthly mortgage payments.)

Interesting financials - where can you get a property that with an 80% LTV allows you to rent for 2x the monthly mortgage payment ?

Crashy_Time

If you owned the house you would be able to do what you want with it?