Consent to let - other half has put off

AdamAJP

Hi all,


I would really appreciate your advice on the following regarding the best course of action for the flat my other half lets out...



We were living together in her flat early in our relationship (we now have a mortgage and two kids elsewhere). She had a fixed rate repayment mortgage which reverted to the standard variable ages go (HSBC) and she did not change this after we moved out (9 years ago). Instead this was left (probably due to some fear of not being able to get a BTL mortgage as she was in negative equity for a few years which is no longer the case). I think there was some fear the bank could ask for more of a deposit or something like that (unlikely I know). She had been living in the flat for many years before we met also.



So the bank is none the wiser but I can't help but think that she is throwing money away in interest unnecessarily - so what to do?


She wants to keep the flat or some sort of property as the tennants have been great and it has all been very easy (managed through an agent taking 11%).



I guess she could either: (assuming the bank would allow a "consent to let" under a new mortgage?).

(a) change to a much better rate repayment mortgage (anything would likely be better) - such as a tracker of some sort.
(b) change to an interest only

(c) change to a BTL - worse interest rates I understand, and is this really necessary?




Please help as I hate the idea of her/us just throwing money away!



Thank you in advance,:beer:


Adam



P.S. I've been watching the forums for ages and now I'm registered I havce realised I should have joined ages ago!

glosoli

What is the property value and balance outstanding on the mortgage?

AdamAJP

Hi Glosoli,


at a guess...


Value of £100k with mortgage of £55k.


Does this now make it more mortgage-able/less risk for the bank?


Thanks


Adam

Thrugelmir

Has the income been declared for tax purposes?

AdamAJP

Hi yes of course - all above board, just don't think she's maximising it.


Of course as the interest is so high (a quick search finds HSBC's atardard variable is 4.19% I believe - Sorry cannot post full link

LRmortgage

Remortgage onto a buy to let mortgage and she will probably be paying less than half the interest rate she is now, plus her mortgage affairs will be in order.

HampshireH

May be worth checking your landlord insurance will pay out if she doesnt have consent to let. (Thats assuming she doesn't of course as its all been on the downlow)

Last thing you would want is a claim declined if one was ever required.

getmore4less

Probably could have done a product switch/retention deal and lender would still never have known.

silvercar

getmore4less wrote: »

Probably could have done a product switch/retention deal and lender would still never have known.

More dodgy doing that when the property is already being let ie switching to a new residential product when you are already letting it. There may well be a clause when you sign up to the new deal that your circumstances haven't changed.