Consent to Let

harshitguptaiitr

Disclaimer - This question is not for my current personal situation, but a topic that came during conversation with friends earlier tonight on dinner


Is Consent to Let a common practice amongst all lenders? Are there regulations about this? I heard First Direct does not provide Consent to Let for more than 6 months...

Are there lenders which will not do provide Consent to Let and force you for early redemption by payment of ERC during fixed term...

If some lender does provide consent to let, what will happen at end of fixed term? Can the borrower remortgage to a different lender at that point, with consent to let carried over to new lender?

Thrugelmir

CTL is industry standard. There are times when people need to vacate their property temporarily.

Lenders would most likely add a surcharge rather than force early redemption of a product.

Normally you'd need to be with a new lender for a minimum of 6 months before they'd consider the application for CTL.

harshitguptaiitr

Thrugelmir wrote: »

CTL is industry standard.

Thanks! Including first direct who don't offer BTL as a product?

Thrugelmir

harshitguptaiitr wrote: »

Thanks! Including first direct who don't offer BTL as a product?

CTL is not the same as BTL.

phillw

harshitguptaiitr wrote: »

Are there lenders which will not do provide Consent to Let and force you for early redemption by payment of ERC during fixed term...

Nationwide only allow you to let for 6 months on a residential mortgage before they add an extra surcharge. However if they decide not to grant permission then you will have to decide what to do. I have heard of people who never asked permission when they let out a flat and give a different correspondence address because they don't trust the communal mailboxes.

harshitguptaiitr wrote: »

Thanks! Including first direct who don't offer BTL as a product?

Yes, but different lenders have different limits for how long you can rent out a property with a residential mortgage. HSBC usually only give you consent for 12 months for example, then you're supposed to take out a buy to let mortgage.

harshitguptaiitr wrote: »

If some lender does provide consent to let, what will happen at end of fixed term? Can the borrower remortgage to a different lender at that point, with consent to let carried over to new lender?

You'll probably have to apply for a by to let mortgage if you want to switch lenders, HSBC for example won't give you consent for the first 6 months of a residential mortgage. Your existing lender might make an exception, or say you can stay on standard variable rate until you move back in.