Can I get Consent to Let after I've borrowed more?

janehayleigh

Hey, we are currently in a repayment mortgage with Halifax.  We have 15 years left, we owe approx. £147k and house value is around £490k, our rate is 1.3% fixed till April 2026 and we pay around £850 a month.  We are trying to sell ours with no luck.  Can we take around £150k of the equity out to use as a deposit for a new house and then get consent to let for this house?  Any ideas welcomed as we've been on for around 3 months with low interest due to location. 
Thanks for any help.

ACG

Call them up and ask. 
They wont pull your product or anything because you are thinking of doing something. 

kingstreet

You may be better doing a 'let to buy' on your current home and seeing if Halifax will allow you to port the current rate to a new Halifax mortgage on the new residence.

Halifax CTL is usually granted for a limited period, perhaps a year for those changing jobs etc and you'll have trouble convincing them to give you a £150k further advance for a new main residence deposit without having to disclose you plan to let your current property.

A decent broker should be able to establish the options for you. First step is to establish the potential rental income value of your current home to see if it will support a £297k mortgage.

Don't forget second property SDLT as well. You'll also have to remove your current property from the market. Mortgage lenders do not like being used for short-term borrowing to bridge a house purchase when unproceedable otherwise.

kingstreet

kingstreet said:

First step is to establish the potential rental income value of your current home to see if it will support a £297k mortgage.

Using the Mortgage Works calculator, you will need a £1,800 monthly rent to justify that mortgage on a five year fix. On a two year fix or similar you would need £2,650 a month.