Posted on 19 August 2011 by Andrew
I own a flat that has been valued at £110,000. I currently owe £98,000 on my mortgage and I'm in the process of trying to sell my property but not getting much interest. If it drags on for too long I am considering renting my flat out. However, as I don't have a lot of equity in my property, I can't put it on a consent to lease with my existing provider as they require 70% LTV and new BTL mortgage rates tend to be very high (even if I can find a provider to lend to me with the equity that I have). Would I have any other options available to me in order to rent my property out?
You will not find a BTL lender offering 90% LTV mortgages and even at 85% there is a very restricted choice. So unless you are able to reduce the debt, remortgaging is out of the question.
I wonder how far you have pushed your existing lender to grant their consent to let and it may be worth lodging a formal complaint on the basis that they are forcing you to sell the property at a time when you would have to reduce the price in order. Whilst they have no legal requirement to agree to the letting the threat of taking your complaint to the FSA can sometimes cause a rethink.
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