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    • loveka
    • By loveka 13th Jan 19, 8:06 AM
    • 440Posts
    • 384Thanks
    loveka
    Santander Refused Consent To Let
    • #1
    • 13th Jan 19, 8:06 AM
    Santander Refused Consent To Let 13th Jan 19 at 8:06 AM
    2 weeks ago I phoned Santander and asked about letting our house. I was told we met all the criteria and we would get a confirmation letter. I was told we would stay on our fixed rate, and then move to a new BTL mortgage if we were still wanting to rent it out at the end of the fix.

    Yesterday we got a letter refusing it. The letter says we as we had additional borrowing less than 6 months ago they cannot grant the consent.

    The background is that we borrowed an extra 22.5k, in 2 lumps. The first was to fix the roof and to do other smaller jobs. The second was our boiler blew up. It was 31st October we got the second additional sum.

    For background the house is worth 475,000. The mortgage is 140,000. We took out a 5 year fix a year ago.

    I am self employed, and lost a major contract near where I live. I have been offered a great opportunity 250 miles away. Due to my age and the industry I work in I am unlikely to find anything else near home in the immediate future.

    We don't want to sell as we don't know if we will like where we are planning on moving to, also the uncertainty around Bexit.

    We have a 6k early redemption charge on the mortgage.

    We are now totally stuck. We can't afford to pay the mortgage and rent in the new location. I don't have any income where we are now. We can't afford the redemption fee.

    After a sleepless night I could really do with some advice. Thank you.
Page 1
    • julicorn
    • By julicorn 13th Jan 19, 8:54 AM
    • 636 Posts
    • 2,713 Thanks
    julicorn
    • #2
    • 13th Jan 19, 8:54 AM
    • #2
    • 13th Jan 19, 8:54 AM
    Have Santander given you an indication of whether they'd grant consent to let after 6 months have passed since your additional borrowing?
    Original mortgage: December 2017, 203,495
    MFW start: April 2018, 201,800
    Current: 178,150
    • Nebulous2
    • By Nebulous2 13th Jan 19, 8:58 AM
    • 2,239 Posts
    • 1,441 Thanks
    Nebulous2
    • #3
    • 13th Jan 19, 8:58 AM
    • #3
    • 13th Jan 19, 8:58 AM
    You have options - though none of them seem palatable to you. Some possibilities are:-

    1. Take up the job and find the cheapest way to live there during the week you can - leaving anyone else at home. So rent-a-room, B&B, caravan, live in your vehicle until you see whether it works out for you. A few months down the road you can reapply for consent to let.

    2. Sell, whether you want to or not.

    3. Get a buy-to-let mortgage and include the 6k ERC in that.

    Every major decision you make in life will involve compromises. There never is the perfect choice. What you need to do is a balance sheet, with pluses and minuses and work out something where you feel for you and your family the positives outweigh the negatives.

    If I may be so bold, don't focus on Santanders refusal as the cause of your worries. The major cause appears to me to be that you have a lot of equity in your home, but don't have the income/ emergency fund to match. Choosing or needing to replace a boiler with secured lending shows you are struggling to maintain your lifestyle.

    Good luck. Big decisions and changes are never easy, but they can be done.
    • loveka
    • By loveka 13th Jan 19, 9:51 AM
    • 440 Posts
    • 384 Thanks
    loveka
    • #4
    • 13th Jan 19, 9:51 AM
    • #4
    • 13th Jan 19, 9:51 AM
    Have Santander given you an indication of whether they'd grant consent to let after 6 months have passed since your additional borrowing?
    Originally posted by julicorn
    No, and that is what I'm wondering! I wondered if anyone here would know
    • DannyPearce90
    • By DannyPearce90 13th Jan 19, 9:52 AM
    • 63 Posts
    • 19 Thanks
    DannyPearce90
    • #5
    • 13th Jan 19, 9:52 AM
    • #5
    • 13th Jan 19, 9:52 AM
    Steer clear of Santander, they really are the worst.

    You do not need to convert to a BTL. You can just ask them for "consent to let". This usually lasts 12 months and is reviewable.
    • loveka
    • By loveka 13th Jan 19, 9:53 AM
    • 440 Posts
    • 384 Thanks
    loveka
    • #6
    • 13th Jan 19, 9:53 AM
    • #6
    • 13th Jan 19, 9:53 AM
    You have options - though none of them seem palatable to you. Some possibilities are:-

    1. Take up the job and find the cheapest way to live there during the week you can - leaving anyone else at home. So rent-a-room, B&B, caravan, live in your vehicle until you see whether it works out for you. A few months down the road you can reapply for consent to let.

    2. Sell, whether you want to or not.

    3. Get a buy-to-let mortgage and include the 6k ERC in that.

    Every major decision you make in life will involve compromises. There never is the perfect choice. What you need to do is a balance sheet, with pluses and minuses and work out something where you feel for you and your family the positives outweigh the negatives.

    If I may be so bold, don't focus on Santanders refusal as the cause of your worries. The major cause appears to me to be that you have a lot of equity in your home, but don't have the income/ emergency fund to match. Choosing or needing to replace a boiler with secured lending shows you are struggling to maintain your lifestyle.

    Good luck. Big decisions and changes are never easy, but they can be done.
    Originally posted by Nebulous2
    I know it must seem like I have some awful chaotic lifestyle, but I really don't! The boiler and roof came at a very bad time.
    • Nebulous2
    • By Nebulous2 13th Jan 19, 11:03 AM
    • 2,239 Posts
    • 1,441 Thanks
    Nebulous2
    • #7
    • 13th Jan 19, 11:03 AM
    • #7
    • 13th Jan 19, 11:03 AM
    I know it must seem like I have some awful chaotic lifestyle, but I really don't! The boiler and roof came at a very bad time.
    Originally posted by loveka
    Not at all. You have a lot going for you with a decent job offer and a lot of equity in your home. I was trying to point out that you do have options.

    It is very soul-destroying trying to maintain a lifestyle when your income is slipping away, sometimes you need to make a decision however, rather than sitting worrying about it.

    I know someone who is out of work, has been offered a contract at 450 a day, and hasn't taken it because of the travel it involves. His cousin who has worked hard all his life, and probably regards 600 a week as a decent wage, cannot comprehend his choice to turn it down - 'because he has to travel a bit!'

    We make the choices that suit us, but a big mistake people make is to set so many preconditions that they believe they don't have any choice.
    Last edited by Nebulous2; 13-01-2019 at 11:05 AM.
    • minimike2
    • By minimike2 13th Jan 19, 11:09 AM
    • 2,055 Posts
    • 1,544 Thanks
    minimike2
    • #8
    • 13th Jan 19, 11:09 AM
    • #8
    • 13th Jan 19, 11:09 AM
    Steer clear of Santander, they really are the worst.

    You do not need to convert to a BTL. You can just ask them for "consent to let". This usually lasts 12 months and is reviewable.
    Originally posted by DannyPearce90
    Have you actually read the original post?
    • enthusiasticsaver
    • By enthusiasticsaver 13th Jan 19, 6:12 PM
    • 8,207 Posts
    • 18,561 Thanks
    enthusiasticsaver
    • #9
    • 13th Jan 19, 6:12 PM
    • #9
    • 13th Jan 19, 6:12 PM
    You will have to do as my DH did when we moved from Greater London to Cornwall and you will need to rent a room in a shared house initially as cheaply as possible and live apart from your family until you are certain if the job will be the right fit for you. I think I would then reapply and put the house up for sale if Santander refuse it again and take the hit. You have a lot of equity and hopefully if the job works out ok you wont have a problem getting another mortgage. You may even be able to port your existing one meaning no early redemption fee.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
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