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Consent to Let Nationwide - Renting whilst travelling
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jmmyers89
Posts: 4 Newbie
Hello all,
So for a bit of context I've detailed my situation below but my main question is, does anyone have any experience of gaining consent to let from Nationwide and is there anything I should be aware of when applying for it?
Context
Myself and my OH have been working towards the following goals for the past 3-4 years now:
1. Buy a flat
2. Save enough money for a healthy deposit
3. Get married
4. Go travelling for a year
5. Come back and move up north
6. Start a family
So 3 years ago, we bought a flat in an area of London where Crossrail is going to open up at the end of 2018 using the Help to Buy equity loan scheme. We're just going through the process of paying off our equity loan so we will end up with about 70% LTV with Nationwide on a 2 year tracker. So that's 1 and 2 sorted.
We've got our wedding booked in for next June at which point we will give up our jobs and go travelling for anything up to a year. When we come back, we want to find jobs up north to be closer to family and settle down.
Our big dilemma is what to do with our flat in London. Ideally we want to keep the flat for as long as possible, and rent up north or buy a very cheap place as we want to realise as much of the uplift in price due to the improvements in transport links. We really don't want to have to sell before Crossrail.
My main assumption all along has been that Nationwide will grant us consent to let for the time we're travelling and when we're back we can convert to a buy-to-let or do a let-to-buy but I'm getting nervous about this now as I'm not sure how they will take the idea of us quitting our jobs and going travelling.
I spoke to a mortgage broker at the beginning of the year about the viability of switching to a buy-to-let mortgage when we leave but I got very negative feedback along the lines of "you can't switch to a buy-to-let from residential without 6 months of renting it out already".
Any help/tips/advice (positive or negative - I'm all ears!), would be greatly appreciated.
So for a bit of context I've detailed my situation below but my main question is, does anyone have any experience of gaining consent to let from Nationwide and is there anything I should be aware of when applying for it?
Context
Myself and my OH have been working towards the following goals for the past 3-4 years now:
1. Buy a flat
2. Save enough money for a healthy deposit
3. Get married
4. Go travelling for a year
5. Come back and move up north
6. Start a family
So 3 years ago, we bought a flat in an area of London where Crossrail is going to open up at the end of 2018 using the Help to Buy equity loan scheme. We're just going through the process of paying off our equity loan so we will end up with about 70% LTV with Nationwide on a 2 year tracker. So that's 1 and 2 sorted.
We've got our wedding booked in for next June at which point we will give up our jobs and go travelling for anything up to a year. When we come back, we want to find jobs up north to be closer to family and settle down.
Our big dilemma is what to do with our flat in London. Ideally we want to keep the flat for as long as possible, and rent up north or buy a very cheap place as we want to realise as much of the uplift in price due to the improvements in transport links. We really don't want to have to sell before Crossrail.
My main assumption all along has been that Nationwide will grant us consent to let for the time we're travelling and when we're back we can convert to a buy-to-let or do a let-to-buy but I'm getting nervous about this now as I'm not sure how they will take the idea of us quitting our jobs and going travelling.
I spoke to a mortgage broker at the beginning of the year about the viability of switching to a buy-to-let mortgage when we leave but I got very negative feedback along the lines of "you can't switch to a buy-to-let from residential without 6 months of renting it out already".
Any help/tips/advice (positive or negative - I'm all ears!), would be greatly appreciated.
0
Comments
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Firstly Nationwide don't do buy to let mortgages.
However they do offer the consent to let which would suit your situation. They shouldn't have a problem granting this and for 6 months your interest rate doesn't change.
However from month 7 your interest rate goes up by 1%.
In my opinion I would avoid telling nationwide that you plan to be unemployed for potentially a year.
I would say you plan to rent in another location. As long as you know you will be able to meet payments (which you will renting) nationwide shouldn't care about what you do as long as they are being paid.
I recently inherited my mother's house which contained a mortgage. They couldn't give me a mortgage as I live and work abroad. I asked about letting and they said no because I couldnt be on the deeds as I couldn't legally take over the mortgage.
I dont think it would be a problem in your situation I would probably withold telling them but about both leaving job.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
I would have thought Crossrail would already be pretty much priced in to the local market?
I can't see prices jumping dramatically as soon as it actually starts operating?0 -
I agree with Tiners, everyone knows Crossrail is imminent, its not as if prices will jump by £100k the day after it opens on the ground it was a secret !
I would look at selling it because otherwise you have a lot of hassle and costs for a short while plus risk.
You have the issue of who will manage this for you? If there's a leak, a boiler goes, whatever, will you be in touch and able to source someone to fix the issue? Assuming notand you have a local agent, that will be very expensive.
Its also a high risk strategy. You have the risk of bad tenants, no payment and so on. can you still pay the mortgage if no rent is coming in? Then when you get back you need to get tenants out, maybe they will need to be evicted so they qualify for housing assistance. Again, more hassle rather than just going up north and buying immediately.
If you were away for 2 or 3 years well maybe it would be worth it financially but for one I doubt it.
And you'd have the benefit of being care free when travelling (that was he aim I suppose?) , no calls at 2am when there is a problem and the agent is asking you to decide between expensive quotes for fixing the boiler or a leak in the roof or whatever.0
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