Barclays consent to let - conditions

pinkpiglit

These are possibly stupid questions, and I've looked in here but can't find the answer. 

We have a 5-year fixed mortgage with Barclays which ends in October 2022, ie next year.

We are moving abroad at the end of this year, and want to obtain consent to let. (We are not selling immediately, just yet in case we have second thoughts and want to come back.... and yes I'm already aware of the pitfalls of becoming LL's, especially in the current economic environment)

Question 1:  The application form on their website has a condition stating "It must be your intention to reoccupy the property on expiry of the tenancy"  The problem is we don't plan to move back in. Once the fixed term is up next year we will switch over to a BTL, and then eventually sell up.   Is this going to be an issue for Barclays?

Question 2:  Another condition is that the rent must cover the mortgage.  I'm not sure whether ours will (have yet to speak to an estate agent).  However we have been overpaying the mortgage every month since day one (by nearly 25%).  Will they take this into account?

Question 3:  Should we be asking a broker to help with the application given I'm already struggling with the conditions, or is that not an option in this situation?

Any advice gratefully appreciated!

K_S

@pinkpiglit

1. You mention "in case we have second thoughts and want to come back". I personally would consider that sufficient to meet the requirement stated.

2. If you have made substantial overpayments and the monthly payment hasn't gone down, you could call Barclays and request them to manually recalculate it and lower the monthly payment.

3. I do assist existing clients with these sort of requests if they need help, but tbh there's not much a broker is going to be able to do to influence the process or outcome. It's usually quite straightforward to DIY.

pinkpiglit

K_S said:

@pinkpiglit

1. You mention "in case we have second thoughts and want to come back". I personally would consider that sufficient to meet the requirement stated.

2. If you have made substantial overpayments and the monthly payment hasn't gone down, you could call Barclays and request them to manually recalculate it and lower the monthly payment.

3. I do assist existing clients with these sort of requests if they need help, but tbh there's not much a broker is going to be able to do to influence the process or outcome. It's usually quite straightforward to DIY.

Thank you for the comprehensive reply - very much appreciated!

On point 2, that is very useful to know. I'd not realised recalculating the payment was an option as we've never needed to.  We've overpaid around £18k and the monthly payment due has remained the same throughout.   Thanks again 

[Deleted User]

alternatively ask them to extend the term of the mortgage to reduce the payment if its just a box ticking exercise.  

pinkpiglit

Deleted_User said:

alternatively ask them to extend the term of the mortgage to reduce the payment if its just a box ticking exercise.  

Thank you - more useful advice!  Hopefully I have been worrying myself over nothing.

pinkpiglit

Sorry I am back with another question on this.

If I wanted to find out whether the monthly repayments can be lowered (given we have made £18k of overpayments), is this something I should do in advance of submitting the consent to let application?   

If so, is there a specific area within Barclays that I need to speak to?

lonibra

If the rent must cover the mortgage, better to lower the payment before you put in the application. Don't get your hopes too high though. If it's a large mortgage over a long term, 18k of overpayments may only make a small dent in the minimum monthly payment.

getmore4less

Get sorted with the information before starting 

You can work out what the payment will be using amount, rate, and remaining full term. 

You can investigate potential rent. 

That will tell you if you also need to increase full term to get payment down

Check current BTL rates against your current rate to see if that also stacks up.

Do you contingency in case you get no rent. 

pinkpiglit

getmore4less said:

That will tell you if you also need to increase full term to get payment down

I didn't think that was something that could be done during the fixed period though?

Worked out the monthly repayment and it only decreases by £123/month, so not a lot unfortunately!

[Deleted User]

You can change the overall mortgage term during a fixed rate mortgage.   Only the rate is fixed, not the mortgage 

pinkpiglit

Deleted_User said:

You can change the overall mortgage term during a fixed rate mortgage.   Only the rate is fixed, not the mortgage 

Thanks for clarifying!