We currently have a consent to lease on our first house which is up next year. Due to circumstances, we will need to rent this out for a bit longer, timeframe currently unknown. Can anyone tell me if it is likely we will be allowed to CTL when the first term is up? Or is it possible that they will refuse this? How many CTL terms have other MNetter had in the past?
We are in a similar scenario I think. Do you have an early redemption penalty if they say no and you have to remortgage. Our is £5k but our fixed rate is pretty high so we might be able to make some of that back.
We've got equity, fortunately we bought at a good time and overpaid for a few years (before we were skint!). I don't particularly want to go btl as we are likely to move back into the property in the future, although probs not for a few years. I don't want to have to change the mortgage twice and pay fees twice! tarka, we would need to pay 2% if we remortgage. I asked about btl and our lender don't offer a transfer so we would need to go with another. Does anyone know how the lending criteria differs for a btl to a residential?
I've got one due to be a forces family. The mortgage lender actually complained when we called to renew! Said its better that we didn't ask and they didn't say I'm pretty sure a lot of houses are let without mortgage companies being informed. Not advice, just an observation.
We have had CTL for 6 years. We initially got it for 1 year, extended it once and occasionally I send them a new lease. We have a lifetime tracker at a very good interest rate so I try not to bring it to their attention.... They have never contacted us about the CTL.
I hope no one will come along and tell me this is a huge problem!
Oh good,that's reassuring! I am with the Halifax, they gave me ctl until 2016. At the time, we thought that would be enough, but circumstances have changed and we could do with it for a few more years now. Halifax's website says that they give you 12 months and then you need to reapply at the end of this period. I did ask about transferring to a btl but they said I would need to move lenders. Surely it is in their best interests to keep giving me ctl as other wise I would move my mortgage and they wouldn't be able to make money from me?
The problem is Halifax may well not want your business and may refuse, there is no guarantee they will let you keep it. After MMR many things have changed and you will need to consider you may need a BTL mortgage, for that generally you need 25% equity and rent should cover 125% of mortgage payments
Yes that might be why mine works as I bought so long ago that the loan to value ratio is great. That said, it is an interes only mortgage so I haven't actually paid down the loan at all yet. Technically.