Consent to let with Woolwich residential mortgage

[Enforcer]

Has anyone got the definitive criteria for Consent to Let through Woolwich?

Looking at 2 years max so within their rules, the rent covers the mortgage payment just, I have over 25% equity in the house and have been with Woolwich for years:
1. New tenant going in but been getting away with it for a number of years - do they "back check"?
2. Living with girlfriend in a rented property so no second property/mortgage
3. Cannot really claim financial hardship as reason - good salary

Will be moving back in after two years or saying so whilst I sell it empty

[PlanB]

Re: Consent to let with Woolwich residential mortgage

Whose name is/has been on the electoral roll while you've been renting it out?

Do you have any utility or council tax bills in your name?

Where has the Woowich been sending your annual mortgage statement?

Is there anything in the Terms and Conditions of your mortgage to say you can rent it out? If not you'll be relying on 'policy and goodwill'.

Is the mortgage in your sole name or in joint names with your girlfriend?

Whose name is on the electoral roll where you currently live? Ditto all utility and council tax bills?

[Enforcer]

Re: Consent to let with Woolwich residential mortgage

Tenants names. Not for that address. Same address . No. Sole name. All at my current address. Problem is when I moved I advised Barclays of change of address, then got letter from Woolwich questioning status of my mortgage.

[Enforcer]

Re: Consent to let with Woolwich residential mortgage

Hi Plan B this post was by my daughters boyfriend. He didn't want to register as a member. He has already been renting this house out for 2 years, then got a letter as he had advised change of address. Worried that if he has to change to buy to let mortgage, the rent will not cover his payments, does not want to sell as every intention to move back in a few years time. Feels that Woolwich have sussed that he is not living there, asking is there a way out?

[Sapphire]

Re: Consent to let with Woolwich residential mortgage

Hi enforcer, I went through a similar situation a few years ago, my mum died and left me a property with a small mortgage on it, I told them I intended to rent it out until the market improved, they told me the mortgage would need to be changed otherwise all insurances etc would become null and void in the event of a claim.
your daughters boyfriend had two choices here, either take a chance and hope he gets away with it, or do the honest way and sleep easy of a night.
is there much difference in the amount of the repayments ?

[Enforcer]

Re: Consent to let with Woolwich residential mortgage

He says that if he changed to buy to let mortgage it would cost him about £400 a month extra.

[PlanB]

Re: Consent to let with Woolwich residential mortgage

Hi Plan B this post was by my daughters boyfriend. He didn't want to register as a member

Thank you for clearing that up. I knew you'd posted on another thread about having a wife so I wasn't sure how to handle the introduction of a girlfriend into the mix

Living with girlfriend in a rented property

[PlanB]

Re: Consent to let with Woolwich residential mortgage

Problem is when I moved I advised Barclays of change of address, then got letter from Woolwich questioning status of my mortgage.

What answer was given to the Woolwich's letter? If they already know it's rented out then they can increase the interest rate in line with a BLT product. The rent would have to cover the monthly payments by 125% to qualify. They are not obliged to give permission to let or provide a substitute BLT mortgage product if you don't meet their current lending criteria for BLT.

The worst case scenario is that you're breaking the Terms and Condition of your mortgage and that could lead to repossession of the property. That's extremely unlikely unless you default on the mortgage payments and your account goes under the microscope.

It will be impossible to lie about the situation because there will be no record of you on the electoral roll or on any utility bills. Presumably the tenants names are on the electoral roll at the rented property which can be checked.

Most lenders will allow a period of rental if there is a good reason. You need to find a reason such as job relocation, waiting for the market to rise to escape negative equity and so on. If there is a definitive time away from the property then it's unlikely you will be required to change the residential mortgage into a BLT one. This is where you can be vague and say it's only for 12 months. At the end of the 12 months say it's only going to be for another 12 months.

If you decide to keep under the radar then make sure your tenant's AST is only six months' long turning into a 2-months notice periodic tenancy, so you can get rid of them if you get caught and need to move back in whereupon the lender would have some difficulty in getting a possession order.

[Sapphire]

Re: Consent to let with Woolwich residential mortgage

Most lenders will allow a period of rental if there is a good reason. You need to find a reason such as job relocation, waiting for the market to rise to escape negative equity and so on. If there is a definitive time away from the property then it's unlikely you will be required to change the residential mortgage into a BLT one. This is where you can be vague and say it's only for 12 months. At the end of the 12 months say it's only going to be for another 12 months.

That's'exactly what I was advised to do, so I told them I was going to rent it out whilst I decided whether to keep the house or sell it on as I wasn't prepared to just let my childhood home go just at that time. It was with the Abby (Santander) and they gave me 18 months to make my mind up, a year down the line I decided all the hassle of being a landlord wasn't for me and sold up.

[Enforcer]

Re: Consent to let with Woolwich residential mortgage

Daughters boyfriend working away in Ireland this week. Will talk to him, let you know his thoughts. Thanks for your answers.

[Enforcer]

Re: Consent to let with Woolwich residential mortgage

Spoken to Daughters boyfriend tonight, rent doesn't cover mortgage payments! Has got away with it for 3 years. Not prepared to take the risk of carrying on, Woolwich have obviously sussed out what has been going on. Will put it up for sale at realistic price for quick sale.

Thanks for the help as usual. Close this thread.

[PlanB]

Re: Consent to let with Woolwich residential mortgage

May I make one final suggestion

He's got 25% equity in the property and a good track record of mortgage payments over several years. Why doesn't he ask the Woolwich if they'll port (transfer the security) the mortgage to another cheaper property with lower payments?

The fact they've sussed him shouldn't matter if he says he always intended to move back in, but has now decided to sell and downsize instead.

It's hard to get a new mortgage at the moment but not so hard to port one you've already got.

Just a thought.