Reason for Consent to Let - Natwest

Tali1989

Hi, I am in the process of buying a second home, with my first and current house to be let out. I’ve had the DIP and I am aware of all the numbers to do with being a landlord as well as buying a second home. 

I am now applying to consent to let on the first mortgaged house, this is with NatWest - I have only had the mortgage for just under 12 months. It is on year 1 out of 5 of a fixed rate. 

The reason I want to move and buy another is because I hate the current area… I want to move to a place nearby where it’s generally nicer (and also a little cheaper). I also don’t like living in my house as it’s no longer fit for my needs, I want one that’s cheaper to run/heat as I am a sole occupier. Another reason is that I just don’t need as big of a house that I currently have. 

Obviously I can’t sell or remortgage to a BTL as I would face a hefty ERC… I also can’t port and remortgage due to insufficient equity. I can’t afford both selling and buying another house due to the ERC (the ERC is still a lot more than the SDLT for the second house I am looking at).

Also, the property market in my area is down currently, so I can’t sell it for what I paid for it when I bought it. So consent to let for the 4 years left would be ideal, or at least for a couple of years until the market picks up again. CTL would be temporary in any case. 

1. When filling out the CTL form, what should I put for the reason why I want to let? Should I say that I want to move simply for “personal reasons” and that I cannot currently sell?

2. On the NatWest criteria website, one of the reasons is “Customer is unable to sell their existing home before buying a new property.” What does this mean exactly?

3. Any tips on how I should word the reasoning to avoid rejection?

4. Should I mention that I cannot afford to remortgage due to current interest rates? My next property would be cheaper than the first one, if it makes a difference. 

Tali1989

Bump, anyone?

silvercar

You could just say ‘personal reasons’ and see if they then ask for more information. 

kingstreet

This looks good to me;-

"I hate the current area… I want to move to a place nearby where it’s generally nicer (and also a little cheaper). I also don’t like living in my house as it’s no longer fit for my needs, I want one that’s cheaper to run/heat as I am a sole occupier."

prettyandfluffy

kingstreet said:

This looks good to me;-

"I hate the current area… I want to move to a place nearby where it’s generally nicer (and also a little cheaper). I also don’t like living in my house as it’s no longer fit for my needs, I want one that’s cheaper to run/heat as I am a sole occupier."

As above and maybe add "The current state of the housing market makes it an unfavourable time to sell so I would prefer to let the house I own rather than sell".