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Consent to let & renwing mortgage
FBF2212
Posts: 2 Newbie
Advice needed please
Due to a temporary relocation for job for 12 months we are looking to rent our house. We are currently on a two year fixed mortgage deal (1.44%) due to expire at the end of the year.
We are hoping to get tennants in 6 months before this having applied for consent to let.
The issue we face is that whilst rented we cant make any changes to the mortgage i.e apply for a new fixed deal. This will mean a significant interest hike (ours will triple) as we will default onto their standard variable rate for the last 6 months of the rental.
The bank says that we can reserve a new mortgage product up to 5 months before the end of the current fixed term but this will be too late if we have already let the property.
Has anyone experienced any leniency when renewing their mortgage earler than allowed? After all we hope to stay with the lender for another fixed term deal.
Due to a temporary relocation for job for 12 months we are looking to rent our house. We are currently on a two year fixed mortgage deal (1.44%) due to expire at the end of the year.
We are hoping to get tennants in 6 months before this having applied for consent to let.
The issue we face is that whilst rented we cant make any changes to the mortgage i.e apply for a new fixed deal. This will mean a significant interest hike (ours will triple) as we will default onto their standard variable rate for the last 6 months of the rental.
The bank says that we can reserve a new mortgage product up to 5 months before the end of the current fixed term but this will be too late if we have already let the property.
Has anyone experienced any leniency when renewing their mortgage earler than allowed? After all we hope to stay with the lender for another fixed term deal.
0
Comments
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Very unusual. They have offered you a special deal in return for your commitment to remain with them, on that deal, for a fixed period of time.Advice needed please
Due to a temporary relocation for job for 12 months we are looking to rent our house. do you mean 'let'?
We are currently on a two year fixed mortgage deal (1.44%) due to expire at the end of the year.
We are hoping to get tennants in 6 months before this having applied for consent to let.do you mean 'tenants'?
The issue we face is that whilst rented 'let'? we cant make any changes to the mortgage i.e apply for a new fixed deal.
Correct
This will mean a significant interest hike (ours will triple) as we will default onto their standard variable rate for the last 6 months of the rental.correct
The bank says that we can reserve a new mortgage product up to 5 months before the end of the current fixed term but this will be too late if we have already let the property. Yes
Has anyone experienced any leniency when renewing their mortgage earler than allowed? After all we hope to stay with the lender for another fixed term deal.
If you wanted flexibility, you should have gone for the standard variable product that allows you to leave ealy, make unlimited adiional payments etc etc.
Cake and eat......0 -
Well hindsight is a wonderful thing. We never expected to have to let our property. The decision has only come about due to a temporary relocation for job. Hence the reason to opt for a fixed term deal offering lower interest.
Any advice regarding the question of negotiating an early mortgage renewal?0 -
Any advice regarding the question of negotiating an early mortgage renewal?
Lenders don't negotiate. Terms of business are set at board level.
You are only relocating for 12 months. When you return you can refix your mortgage. Only part of the year being impacted anyway.
Bigger concern must be if you have any issues with your tenants or a lack of income. Either of these circumstances and you'll be out of pocket.0
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