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Consent to let vs Buy to let - affecting borrowing
comptp
Posts: 13 Forumite
Hi,
We have a house (1) that was rented out 7 years ago under a normal mortgage with a consent to let agreement, currently rented out for £550 PCM with a mortgage of £450pcm. Worth 150k, with a 73k mortgage left.
We have a house (1) that was rented out 7 years ago under a normal mortgage with a consent to let agreement, currently rented out for £550 PCM with a mortgage of £450pcm. Worth 150k, with a 73k mortgage left.
We then have a second mortgage (2) for the house we live in, under normal conditions.
We plan to sell house 2, we called our lender on Friday (both same company), in the end we fell 20k short on the DiP. The advisor suggested that’s because house 1 is consent to let not buy to let, meaning it takes that 73k off our lending potential. So we’re switching 1 to BTL today, which will take 18/24 days.
Is that other people’s understanding or BTL vs CTL? Anyone have a similar experience?
Just panicking as we have an offer accepted on a house, they’re cool to wait while we get an offer on house 2. But worried we’ll get all the way there and fall at that hurdle...
Grateful in advance
Just panicking as we have an offer accepted on a house, they’re cool to wait while we get an offer on house 2. But worried we’ll get all the way there and fall at that hurdle...
Grateful in advance
0
Comments
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Best off asking on the mortgage board as that's where the brokers hang out.Mortgage started 2020, aiming to clear 31/12/2029.2
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CtL means a normal residential mortgage. Great for short-term, but for long-term you really want to move to BtL.
They're looking at your finances as if you had two residential mortgages (because... you do), whereas a BtL would mean just one.1
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