Posted on 25 June 2012 by Alan
I purchased a house with an ex in 2008 on a Northen Rock 100% mortgage
I am now currently on the SVR and have 162k left on the mortgage which is about equal with the current value of the house.
We have transferred the equity (even though there is none) into my new partners name and have enough savings to look to buy a new house at 160k in a different area to be closer to family. We dont want to sell as there would be little value in doing so
Rental income will be 850 a month which will cover the mortgage on a repayment
Do you have any experience of consent to let from NRAM and will we able to get a second mortgage for the new home?
NRAM are very difficult to pin down and I can not get a definitive answer yes or no for you. They have a huge questionnaire that you will need to complete and will expect the anticipated rental to cover the monthly mortgage payments by at least 125%. There is also a £100 fee for an annual consent or £250 for a longer term consent.
We recently had success with a client in Bristol and once consent was agreed they kept the interest rate the same, but to quote our consultant "it was a slow and painful process".
Looking on the bright side, if consent is granted you will then be able to secure a second residential mortgage with another lender. There will still be a few lenders who will want your earned income to cover both mortgage debts, but there are plenty who will ignore the let property if you can show you have consent to let.
We can help you negotiate with NRAM and also use our experience of the whole mortgage market to track down the best available mortgage on the new property for you.
Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you out.
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