Additional borrowing followed by consent to let...

Minx1986

Does anyone have any experience of applying for additional borrowing against a current property, to raise deposit for a 2nd home, and then applying immediately for a consent to let. Especially with natwest. Has anyone done this successfully, was there a time limit on how quickly you could apply for the CTL. We've been advised by an independent Mortgage Adviser it's unlikely that they would give the additional borrowing knowing our intention would be to let... but NatWest were the ones who actually suggested this to us... Anyone been able to do what we are considering? TIA

Thrugelmir

If it's only a temporary move. Why would you be releasing equity?  CTL isn't potentially any less restrictive than BTL.  Interest loadings and time limitations can be applied. Along with annual renewal fees. CTL applications are considered on their own merits. 

[Deleted User]

Why not just change to a Buy to Let mortgage as part of a remortgage?  You may have an early repayment charge with Natwest but they charge higher than normal rates for additional borrowing so it might cancel itself out. 

As a broker I dont think i would apply for natwest residential mortgage borrowing knowing it is going to be immediately rented out.   If i was to do that and then the consent to let was refused then you would have a higher mortgage balance and higher payments for no reason. Not great advice.   
Natwest might be suggesting it as they control the internal process of CTL so might be able to give more certainty that CTL would be approved.   There is also a very good chance that you have been told incorrect information by a phone agent rather than a qualified mortgage advisor or an underwriter.  

A broker should tell you upfront what deals they can and cant do.  For most people this would be telling them what kind of lenders they dont do business with, but its also pointing out that brokers can not access any special deals or underwriting that is only offered direct in the branches.   A lot of lenders have direct only underwriting and a lot have broker only underwriting.