Birmingham Midshires consent to let and negative equity

by Readers Question

11:18 AM, 9th January 2017
About 2 years ago

Birmingham Midshires consent to let and negative equity

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Birmingham Midshires consent to let and negative equity

I have a residential mortgage with negative equity. I have had to rent out the property and am concerned about informing mortgage lender and being forced onto buy to let mortgage. I have a very low interest tracker mortgage.consent to let

I am also wondering if I am put onto buy to let will I have to pay down mortgage to 75% LTV as I don’t have money to do that? With rental coverage requirements then I would have to pay down more of the debt.

Thanks.

Yousam



Comments

Neil Patterson

11:22 AM, 9th January 2017
About 2 years ago

Hi Yousam,

Technically you should have asked for consent to let before you rented the property as now you are worried what the answer will be and you are already in the position of breaching your mortgage contract so you are in the hands of the lender.

The good news is that some lenders can be very helpful if there is good reason to let the property and it is a short term solution with consent generally being given for 1 to 2 years max.

After this the lender will normally want you to transfer to one of their BTL products or remortgage, but it does all depend on the individual lenders current terms and conditions and criteria.

Monty Bodkin

13:25 PM, 9th January 2017
About 2 years ago

Is the property currently making a profit?
Are you declaring it to HMRC?


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