Residential or Buy To Let

Posted on 20 October 2012 by Rodney


Hi John.Would it be possible to take out a mortgage,pay a couple of months,then tell the mortgage company that I wish to let the house?Would they be obliged to grant me my wish or could the cancel the whole deal?Is there a minimum period before I could change to a letting mortgage?Hope this makes sense.

Most lenders typically won't grant what is known as a 'consent to let' in the first 6 months of the mortgage term, as they feel that within this time you would have known that there was a possibilty that you would have wanted to let the property out. Also lenders reserve the right to amend the rate to a Buy To Let one, so although they wouldn't want their money back, they wouldn't keep the mortgage on a residential rate. Before submitting an application we would complete a fact find with you to look at what you would need from the mortgage, and whether it is likely that you would be looking to rent the property out.

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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