Hello,
I've read the forums and many threads are slightly dated on this subject.
I currently live in a 3 bed semi detached house (another room could become a 4th bedroom for rental purposes). The rental value is probably c£800 - £900 per month. The house cost £179k and the outstanding balance of the mortgage is c£125k (I paid a big deposit)
I'm fixed at 5.1% until May next year. Prior to this I may move out of the house and would like to let it. I spoke to Santander today. They checked my payment record (always paid on time and in full for 2.75 years now) and they said they would give me a letter of consent for a fee of £275. I assumed this was a one off fee but reading on these pages it seems like I'll also have to pay an annual fee?
I'm told that if I don't refix I'll go onto the standard variable of 4.74%. However, what are the chances of me refixing in May 2015 (they are currently offering 2 year fixes for 3.79%) and then hanging on for a couple of months before asking for the letter of consent and commencing letting the house out?
Would santander look at this as a blatant dodge to avoid paying a higher BTL rate and refuse or would they be more concerned with my ability to repay it via rentals and allow it?
Their buy to let mortgage includes a fee and the current rate is 4.99% so I'm better off on SVR than taking a buy to let mortgage.
My situation is that I'm currently a live in landlord but have now decided that i would prefer to live on my own and so would rent out the house and get a flat on my own.
The other option is to sell in May next year but not sure that i'd really want to do this as value has been lost and would like to stay on the ladder until I see another property that I want to buy.
Any suggestions welcome.:)
I've read the forums and many threads are slightly dated on this subject.
I currently live in a 3 bed semi detached house (another room could become a 4th bedroom for rental purposes). The rental value is probably c£800 - £900 per month. The house cost £179k and the outstanding balance of the mortgage is c£125k (I paid a big deposit)
I'm fixed at 5.1% until May next year. Prior to this I may move out of the house and would like to let it. I spoke to Santander today. They checked my payment record (always paid on time and in full for 2.75 years now) and they said they would give me a letter of consent for a fee of £275. I assumed this was a one off fee but reading on these pages it seems like I'll also have to pay an annual fee?
I'm told that if I don't refix I'll go onto the standard variable of 4.74%. However, what are the chances of me refixing in May 2015 (they are currently offering 2 year fixes for 3.79%) and then hanging on for a couple of months before asking for the letter of consent and commencing letting the house out?
Would santander look at this as a blatant dodge to avoid paying a higher BTL rate and refuse or would they be more concerned with my ability to repay it via rentals and allow it?
Their buy to let mortgage includes a fee and the current rate is 4.99% so I'm better off on SVR than taking a buy to let mortgage.
My situation is that I'm currently a live in landlord but have now decided that i would prefer to live on my own and so would rent out the house and get a flat on my own.
The other option is to sell in May next year but not sure that i'd really want to do this as value has been lost and would like to stay on the ladder until I see another property that I want to buy.
Any suggestions welcome.:)