Consent to let dilemma

[Sarah05]

I have a big dilemma. I wish to get “consent to let” from my mortgage provider. I know it won’t be that difficult to get one but rate of interest would shoot up quite drastically. Now, I have been told by a friend of mine that if I remortgage first and enter into a fixed rate product then for the period of that fixed rate tenure I will not be charged the consent to let rate. Which in effect means that I will get the consent to let from the mortgage provider and still be paying a lower rate of interest. Is that correct? Can you please throw some light on this?

 

 

Regards

 

 

Sarah

[Guest]

It would depend entirely on the terms of your specific mortgage - you might even find that having paid a fee for a fixed rate mortgage (as you often would) that it reverts to the higher variable rate and you'd lose out more.

 

We were on a discount rate tracker mortgage and all that happened was 1% was added to the interest rate so it depends entirely on the bank or building society.

 

It could be better remortgaging onto a 'buy to let' there are some surprisingly competitive deals and you can still get an interest only mortgage which would cut your outgoings (I don't know your story so that's assuming you don't ever plan to come back)

 

Whatever you do don't be tempted not to tell the mortgage company.

[Sarah05]

Haven't got enough equity for BTL. We are currently on SVR and plan to sell the property in few years time. Even if we don't then after the fixed term deal we will be back on SVR. The comparison I am trying to do is the difference of rate between a new fixed term deal and a consent to let, which is huge.

[winter1]

Hate to be the bearer of bad news but if you still have a house in the UK maybe you should check this out.

 

http://www.telegraph.co.uk/finance/personalfinance/expat-money/10477655/Action-plan-over-property-tax-raid.html

[jawaustralia]

I have a 5 year fixed rate mortgage with RBS at the moment and I have a 40% LTV, and am moving to Sydney next year. Yes I was told that consent to let would be fine to get once I move out as it was taken out in good faith as a residential mortgage (as opposed to a buy to let mortgage).

 

My understanding was there isn't any penalty interest applied to this.

 

The reason for asking for consent to let is due to me moving country, not taking the piss which will help in getting the consent

 

I previously had consent to let with the Halifax for another property but once the period of the residential fixed rate mortgage came to an end, then I was having to pay the buy to let rates going forwards which usually also require 25% equity in the property.