Withdrawing Consent to Let

nohassles

I have a mortgage which is coming to the end of its fixed rate. I moved abroad at the end of last year and was granted Consent to Let, but as a result of that, they will put me onto the SVR once the fixed term ends and will not negotiate another fixed rate while I'm still on CTL. Due to my circumstances abroad, it's difficult/impossible to get a good remortgage with another provider. I am wondering about the implications of notifying the mortgage company that I wish to come off CTL, then renewing my fixed rate, and then going back onto CTL.

Will the mortgage company advise my letting agents of the change? If so, are the agents legally obliged to not let? Would the mortgage company refuse to re-grant CTL?

csgohan4

Why not move to BTL mortgage. CTL is only temporary as you know and at lender discretion

Thrugelmir

Sounds as if CTL isn't being withdrawn. Simply that you are being charged a higher rate of interest as the property is being let. 

foxy-stoat

Sounds like its time to sell it or take out a BTL mortgage, Landlord.

nohassles

csgohan4 said:

Why not move to BTL mortgage. CTL is only temporary as you know and at lender discretion

That was obviously my first intention, but my current circumstances make it impossible to get a remortgage of any kind.

nohassles

Thrugelmir said:

Sounds as if CTL isn't being withdrawn. Simply that you are being charged a higher rate of interest as the property is being let. 

Sorry, I should have made the title clearer. I'm referring to me asking to end the CTL.  

Thrugelmir

nohassles said:

Thrugelmir said:

Sounds as if CTL isn't being withdrawn. Simply that you are being charged a higher rate of interest as the property is being let. 

Sorry, I should have made the title clearer. I'm referring to me asking to end the CTL.  

I suspect your lender might see through the ploy.  Secondly there's nothing to stop your lender putting a loading onto whatever product you opt for. CTL is granted at the lenders discretion on their terms. Does your lender offer BTL?  CTL is only meant to be a temporary measure not a back door route to a BTL. 
If they were to decline your application for CTL. Then you'd be in breach of your mortgage contract. If you continued to let the property. 

davidmcn

If you no longer have consent to let then you're back to standard mortgage conditions, which require you to occupy the property as your main residence. I take it you're not planning to do that? Kidding on to the lender that you are would probably constitute fraud.

nohassles

davidmcn said:

If you no longer have consent to let then you're back to standard mortgage conditions, which require you to occupy the property as your main residence. I take it you're not planning to do that? Kidding on to the lender that you are would probably constitute fraud.

Well, I certainly wouldn't want to defraud those poor innocent financial institutions.

csgohan4

nohassles said:

davidmcn said:

If you no longer have consent to let then you're back to standard mortgage conditions, which require you to occupy the property as your main residence. I take it you're not planning to do that? Kidding on to the lender that you are would probably constitute fraud.

Well, I certainly wouldn't want to defraud those poor innocent financial institutions.

those poor  innocent financial institutions  can put you on the fraud register and good luck getting any kind of credit.
https://www.nhunter.co.uk/

Lending is regulated and if they find out, the can recall the loan as well, you are the one in the wrong if they found out. The fact they do business with millions of pounds is irrelevant,. Your not lending off Larry from the pub. 

Put it this way, if your brother lent money off you as he says it's for his rent, you find out he used the money for a trip the Maldives, most people would not happy, only with the bank they can actually do something about it and force you to sell or pay the money in full as you signed a contract.