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Change Residential mortgage to consent to let to buy another residential property to live in
tom1231
Posts: 9 Forumite
Bit of a strange one it seems....
I am buying a new build property with my partner and we have our residential mortgage approved in principle and soon to pay £50,000 exchange fee.
I currently own a property with an existing residential mortgage with Barclays (Fixed term finishing this month 11/03/2022)
The new build will be ready around 30/06/2022, the plan was to sell the house so I can then get another residential mortgage but with the time scale and risk of losing 50k deposit for the new build and not being able to complete, I am looking for options to keep this house and sell it later down the line. (I do not need to take any money from this house to buy the next for the deposit)
The plan was to get a buy to let mortgage on the current property as I have enough equity, though that locks me in for a couple years with big fees and hassle I don't really want. This would however allow me breathing space and would allow me to get the residential mortgage.
When speaking to the mortgage advisor, he advised me I COULD change my current residential mortgage with Barclays to a "consent to let" mortgage for 6 months/1 year which would allow me to then get another residential mortgage and still sell my existing one whenever I need to within the next year. All sounds too good to be true.
Finally coming to my questions:
1. If I change my residential mortgage to a consent to let, will this allow me to then get another residential mortgage?
2. If so what would happen at the end of the consent to let period? If I am living in the other house, would I just be forced to change it to a buy to let or sell it?
3. The consent to let form says I would need to intend to return back to the property to live in after the consent to let period is over. I suppose I could intend to do that, who knows? Will they let me consent to let if I only want to rent for a few months then sell or would I need to intend to move back to the property?
Thanks for any help on this
I am buying a new build property with my partner and we have our residential mortgage approved in principle and soon to pay £50,000 exchange fee.
I currently own a property with an existing residential mortgage with Barclays (Fixed term finishing this month 11/03/2022)
The new build will be ready around 30/06/2022, the plan was to sell the house so I can then get another residential mortgage but with the time scale and risk of losing 50k deposit for the new build and not being able to complete, I am looking for options to keep this house and sell it later down the line. (I do not need to take any money from this house to buy the next for the deposit)
The plan was to get a buy to let mortgage on the current property as I have enough equity, though that locks me in for a couple years with big fees and hassle I don't really want. This would however allow me breathing space and would allow me to get the residential mortgage.
When speaking to the mortgage advisor, he advised me I COULD change my current residential mortgage with Barclays to a "consent to let" mortgage for 6 months/1 year which would allow me to then get another residential mortgage and still sell my existing one whenever I need to within the next year. All sounds too good to be true.
Finally coming to my questions:
1. If I change my residential mortgage to a consent to let, will this allow me to then get another residential mortgage?
2. If so what would happen at the end of the consent to let period? If I am living in the other house, would I just be forced to change it to a buy to let or sell it?
3. The consent to let form says I would need to intend to return back to the property to live in after the consent to let period is over. I suppose I could intend to do that, who knows? Will they let me consent to let if I only want to rent for a few months then sell or would I need to intend to move back to the property?
Thanks for any help on this
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