Posted on 26 March 2013 by Maria
I have a small house in London and in 2004 I advised my mortgage lender - Intelligent Finance - that I was letting it out and they agreed to this. But IF have recently contacted me to say permission only now applies for three years at a time and that they will now be levying an annual charge of 1% pa of the outstanding mortgage amount because the property is let. Are all the big lenders doing this and can you advise of any who aren't so I can switch my mortgage? Thanks
Most residential lenders will usually allow a 'consent to let' for a set period of time, but once this has expired they will either expect the borrower to remortgage away to a normal Buy To let product, or they will will 'load' the rate you are currently on as this is no longer a residential mortgage.
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