Reply to: Consent to Let on C&G mortgage

[vetran]

I am aware that the insurance companies are not particularly concerned about the mortgage in place on the property but you must disclose to the insurance company that the property in on a residential mortgage and not a BTL mortgage at the time of application. The insurance companys risk profile is not alterered by the type of mortgage, only the type of occupier i.e. tenant and furnished or unfurnished. As always though make sure you tell them so they can't use it to wriggle out afterwwards if something were to happen.

yep there is a reason why they ask 'has the car been modified at all' its so they can avoid paying out if you have furry dice.

[geoff from contracta IOM]

Surely the insurance would insure the property, not the mortgage - so if the property is a BTL then the insurance would need to be BTL insurance, but it wouldn't matter to the insurance company what kind of mortgage you have. I.e. how you got hold of the money to buy the house doesn't matter, what matters is that you have the house and want to insure it.

I am aware that the insurance companies are not particularly concerned about the mortgage in place on the property but you must disclose to the insurance company that the property in on a residential mortgage and not a BTL mortgage at the time of application. The insurance companys risk profile is not alterered by the type of mortgage, only the type of occupier i.e. tenant and furnished or unfurnished. As always though make sure you tell them so they can't use it to wriggle out afterwwards if something were to happen.

[alreadypacked]

No one is saying they won't insure it... its the paying out that will be the problem.

+1

[moggy]

I am sure that by paying over the odds you could get the house insured for BTL under a normal mortgage as it's quite a common fraud. You'd need to find a friendly broker though.

No one is saying they won't insure it... its the paying out that will be the problem.

[Lockhouse]

I am sure that by paying over the odds you could get the house insured for BTL under a normal mortgage as it's quite a common fraud. You'd need to find a friendly broker though.

[alreadypacked]

Surely the insurance would insure the property, not the mortgage - so if the property is a BTL then the insurance would need to be BTL insurance, but it wouldn't matter to the insurance company what kind of mortgage you have. I.e. how you got hold of the money to buy the house doesn't matter, what matters is that you have the house and want to insure it.

If you bought a stolen car and insured it, then crashed it, would the insurance company pay out?

First they would check out the car/house.
Then they would say the original terms of the policy were not met.
Then they would cancel the policy.

HTH

[alreadypacked]

not had much experience with insurance companies then?

+1

[vetran]

not had much experience with insurance companies then?

[Ignis Fatuus]

Let's hope OP never has to make a claim and the insurance company deem cover to be invalid because a "proper" BTL mortgage isn't in place

Surely the insurance would insure the property, not the mortgage - so if the property is a BTL then the insurance would need to be BTL insurance, but it wouldn't matter to the insurance company what kind of mortgage you have. I.e. how you got hold of the money to buy the house doesn't matter, what matters is that you have the house and want to insure it.

[Martin@AS Financial]

I contacted C&G recently to ask how I go about getting a consent-to-let on my house in Devon, as we don't use it much now that my kids are growing up, and would be better used as a rental.

They wouldn't give it, period. They only offered for me to apply for Buy-To-Let mortgage at 5-6+%. mad

Push comes to shove think we can pay it off in cash or transfer of capital from our Santander Felxible mortgage within 2.5 years.

Used to be so easy, consent-to-let, certainly sir, £80 please. Job done.

Their standard variable rate is currently 2.5% so they will want you off that and onto a BTL product asap. 6% is very strong though. Depending on how much the property is worth, the mortgage outstanding and the rental income is, there are much cheaper options out there.

[kingcook]

I would read the original T's and C's and see what it says about granting consent for letting. Or just rent it out and make sure you insure it as a BTL. Not sure how G & G would ever know ?

Let's hope OP never has to make a claim and the insurance company deem cover to be invalid because a "proper" BTL mortgage isn't in place

[alreadypacked]

I would read the original T's and C's and see what it says about granting consent for letting. Or just rent it out and make sure you insure it as a BTL. Not sure how G & G would ever know ?

A mortgage may entail restrictions on the use or disposal of the property. If one of the restrictions is renting, you are breaking the mortgage contract if you rent.

The reasons behind it may be that tenants can become "sitting-tenants" and reduce the value of the property to less than the value of the mortgage.

[d000hg]

Try another lender?

Of course those thieving scumbag bankers have to make their money somehow....

You're still not going to get anything like the rate he's on now.

We were pleasantly surprised how easy it was to get permission, we also did this after rates dropped to .5% so we feared the worst but they just said "give us £200 a year and it's fine".

[geoff from contracta IOM]

I would read the original T's and C's and see what it says about granting consent for letting. Or just rent it out and make sure you insure it as a BTL. Not sure how G & G would ever know ?

[MarillionFan]

Don't tell them and hope the tenant doesnt burn your house down.