Has anyone been denied 'permission to let' from Nationwide?

vikkytoria

Hi, i'm looking to move in with my partner and let my house out (he has kids and his house has more space for them, whilst mine doesn't). As I'm tied into a fixed rate mortgage with Nationwide for the next 4 years, we thought letting my house would be a good option to avoid ending the fixed term early and incurring fees, and after doing some research I read that i'll need to fill in a 'permission to let' form to get consent.

I'm concerned that i'll be denied permission, after reading other forums I have the impression that it might get denied as moving in with a partner isn't a valid enough reason. Has anyone else been in the same boat and can anyone tell me how it went for them please?

Thanks in advance!

Fosterdog

Permission to let is usually only given short term, six to twelve months, after that you may be required to change to a buy to let mortgage would have early redemption fees to repay whether you make the switch now, make it at a later date, or just sell up.

Another option would be to not actually move in with your boyfriend but continue to live in your place and stay there a couple of nights a week but take in a lodger to help cover the costs of running the place. Although that carries its own risks it's no more risky than letting out the whole property.

G_M

The basic concept behind Consent To Let is that the property remains your main residence but you are temporarily letting it eg while on secondment for work elsewhere. 6 to 12 months, sometimes renewable.


If you are moving in with a partner, then clearly it is no longer your main residence - it becomes a business. Hence likely to require a Buy To Let mortgage.


Of course, different lenders will have varying policies, and the precise wording you put on your application may also affect their decision. I believe N/W are more flexible than some but I have no direct experience.

GrumpyDil

And going back to the actual question.

I found NW very good a few years back when we moved and asked for CTL.

Our rational was that we were tied into a fixed term, wanted to move and didn't want the hassle of having to sell at the same time.

NW were happy to grant CTL and even extended it without our needing to apply.

I'd say give them a call and ask.

Retired_Mortgage_Adviser

Unless things have changed dramatically in the past 2 years, NW is very relaxed about CTL. It might have something to do with the fact that they tack on a 1% surcharge to your interest rate after 6 months to compensate for the additional risk.

There was a very simple form to fill, and all my daughter gave as a reason was "renting closer to work". No further explanation or evidence was sought or given.

The only stumbling block might be if the LTV is too high, my daughter's was sub 75%

vikkytoria wrote: »

Hi, i'm looking to move in with my partner and let my house out (he has kids and his house has more space for them, whilst mine doesn't). As I'm tied into a fixed rate mortgage with Nationwide for the next 4 years, we thought letting my house would be a good option to avoid ending the fixed term early and incurring fees, and after doing some research I read that i'll need to fill in a 'permission to let' form to get consent.

I'm concerned that i'll be denied permission, after reading other forums I have the impression that it might get denied as moving in with a partner isn't a valid enough reason. Has anyone else been in the same boat and can anyone tell me how it went for them please?

Thanks in advance!

diggingdude

vikkytoria wrote: »

Hi, i'm looking to move in with my partner and let my house out (he has kids and his house has more space for them, whilst mine doesn't). As I'm tied into a fixed rate mortgage with Nationwide for the next 4 years, we thought letting my house would be a good option to avoid ending the fixed term early and incurring fees, and after doing some research I read that i'll need to fill in a 'permission to let' form to get consent.

I'm concerned that i'll be denied permission, after reading other forums I have the impression that it might get denied as moving in with a partner isn't a valid enough reason. Has anyone else been in the same boat and can anyone tell me how it went for them please?

Thanks in advance!

How long did you fix for and when? If you only signed a new mortgage a couple of months ago it may look like you always planned to rent and didn't want to get a btl mortgage

Mutton_Geoff

diggingdude wrote: »

How long did you fix for and when? If you only signed a new mortgage a couple of months ago it may look like you always planned to rent and didn't want to get a btl mortgage

Agreed, there is a minimum period that you need to have been on that loan before CTL will be approved (six months perhaps?).

lisyloo

There is a work associated with being a landlord.
There are legal/safety requirements, admin, accounts and repairs.
Also likely income tax and CGT to pay.

It seems like you won’t save the 1% according to post#5.

How does being a landlord fit into your life?
I.e. are you willing to take on the work involved.
Can you do most things DIY? Book keeping as well as repairs?
You can delegate the agency side but it comes at a cost of course.
Also how does it fit into your tax planning? For example could the extra income push you into the 40% tax bracket? And does that make it worthwhile? (You could mitigate higher rate tax by paying more into your pension but only if you can afford it).

Baby_Angel

Retired_Mortgage_Adviser wrote: »

Unless things have changed dramatically in the past 2 years, NW is very relaxed about CTL. It might have something to do with the fact that they tack on a 1% surcharge to your interest rate after 6 months to compensate for the additional risk.

There was a very simple form to fill, and all my daughter gave as a reason was "renting closer to work". No further explanation or evidence was sought or given.

The only stumbling block might be if the LTV is too high, my daughter's was sub 75%

This information is spot on. I called NW when we were thinking of renting out our main home. This was what I was told too. In the end we actually sold. We had a five year fixed and 4 years left when I called.