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Consent to let - Clydesdale bank


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  • 3 weeks later...

Hi @murray d 

 

I have experience with another bank. I can understand if anyone feels apprehensive about asking for Consent for Let (CTL) because it's never guaranteed your request will be approved. When I purchased my second residential property, the intention was to live at the property for at least two years for work purposes away from the main home and then look towards BTL after the two years, however a change in circumstances with my partners work schedule and responsibilities resulted in not needing to be at the property so much. Rather than switch to BTL and incur a redemption fee charge, I did some research to see if there other options before going down the BTL route. I looked at Let-To-Buy, Regulated BTL (different to regular regulated BTL) and CTL. I hadn't heard of any of these options, but this gave me some hope that a solution would be available.

 

CTL seemed like the first process to try as its fairly low cost. I noticed on my online mortgage account there was a Consent To Let (CTL) process. However, before jumping in, I booked an appointment with the Mortgages Manager at the branch, just to check I understood the process, but also to examine my confidence levels on whether a CTL request would be approved. Also I thought turning up and talking to the Mortgage contact would make my application seem more favourable - I recall phone calls were being made to their mortgage back office to check various facts. Anyway, so I went home, read the terms & conditions of the CTL, filled out the CTL request form supplying a genuine reason why I wouldn't be living at the property - this is important to state and do write this part carefully so it's not questioned by the bank otherwise you'll encounter delays and even rejection. I supplied the non-returnable £100 cheque, and one week later my application was approved. Fortunately my mortgage provider provided no time limit, but since it was a two year mortgage I am assuming the CTL will lapse. I intend to move the property to a BTL because I don't want my main incomes to be financing the property from after the two year fixed-term residential mortgage ends.

 

Hope that helps. 

 

 

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  • 2 weeks later...
  • 1 month later...
On 10/6/2018 at 1:59 PM, murray d said:

Hello

 

Thanks for the reply. What sort of checks were they doing and what information did they want you to provide? Apart from the £100 cheque were there any other costs or changes to your repayment? ALso how far into the mortgage were you when you applied for CTL?

 

Thanks

 

Apologies it's been a while, but to answer your questions quickly, I have no idea what sorts of checks the mortgage provider were doing. Maybe someone familiar with the checks can comment on this. I get the impression the mortgage provider are checking they are satisfied the the case for CTL in it's spirit is satisfactory. I had incurred no further costs, but you should check what conditions are set by your mortgage provider by going into a CTL agreement. I was 6 months in, which is the bare minimum I would think about applying, but I think what helped was by meeting face to face with the mortgage manager at the bank, and just having an informal chat about your reasons to go to into CTL and understanding the process with them. It sounds daunting but honestly I was really grateful after I did it.

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Thanks for your reply. I think you are right. Cards on the table might just be the best approach. I’m sure the bank will rather keep us as a customer than potentially lose us because of a change in circumstances. I’ll maybe have a chat with a mortgage broker first to pick their brains about our options before going to the bank 

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They are fine with this. My client did exactly this, this year on a London flat which was highly geared.

 

They are more concerned if you take out a buy to let and move into it.

 

Clydesdale treat all loans on an affordability basis anyway.

 

They won't change the rate but when it comes to renewal they will put it on btl rates.

 

As with anything this could change especially as they will likely rebrand as virgin money soon.

Wesley Davidson

 

Director & mortgage broker

 

T

01179 897 950

M

07967 033 452

E

wesley@foxdavidson.co.uk

W

foxdavidson.co.uk

 

 

 foxx.png

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  • 1 month later...
On 11/24/2018 at 1:12 PM, murray d said:

Thanks for your reply. I think you are right. Cards on the table might just be the best approach. I’m sure the bank will rather keep us as a customer than potentially lose us because of a change in circumstances. I’ll maybe have a chat with a mortgage broker first to pick their brains about our options before going to the bank 

 

How did you get on?

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  • 2 weeks later...

We havent really made any progress yet. Unfortunately we have now lapsed on to the variable rate so decisions have to be made soon. Annoyingly I am inbetween contracts with my work and my wife is only working p/t so might be tough to remortgage. Either wait til I get a new contract which will hopefully be soon, or my accounts get filed for my second year self employed and I can approach more lenders with that evidence of earnings. There is the chance that there is enough equity in the property already to avoid us having to put more cash in to reach the required 20-25% BTL desposit but I think the lenders would still want to know we have the income/earnings to support it.

 

TBH this really shld have been handled a long time ago but we just buried our heads in the sand as we werent sure how the lender would react. I guess in retrospect honesty is the best policy and we shouldve have tackled it head on.

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  • 3 months later...
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Not sure if you managed to sort it out since Jan, but just to say, when you want to move from the SVR onto a new deal, they don't ask questions regarding your income. 

If it looks like you are still not moving out for a little while, then taking a new resi deal should be very easy to sort out whether you have a new contract / your accounts filed or not.

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Thanks - we are looking to move it to a BTL deal. Ive spoken to a mortage broker who seems happy there is enough equity in the proprty now to allow us to move to a 75 ltv deal without investing anymore capital. They are interest in my wife's income and also credit - I can only assume that becasue we are moving to a new lender?

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