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Pls help - consent to let probs from Northern Rock
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catlover32
Posts: 35 Forumite
Northern Rock have declined consent to let my property unless I can reduce my loan by £39k, despite me submitting a supporting letter with my application form stating that:
- I am moving in with my partner, who requires no rent as he owns his house outright. I have even given them his contact details to verify.
- The rental will cover almost all of my mortage payment, and again I submitted them with contact details of the letting agency who verified this.
- I earn £35k a year and this, with point 1 above, means that not only can I keep up with payments, but the extra cash will mean I can overpay and therefore reduce my borrowing in the long-run.
I feel they're being very unfair and in fact am hopping mad about it. I'm just writing my appeal letter - can anyone offer any additional advice?
- I am moving in with my partner, who requires no rent as he owns his house outright. I have even given them his contact details to verify.
- The rental will cover almost all of my mortage payment, and again I submitted them with contact details of the letting agency who verified this.
- I earn £35k a year and this, with point 1 above, means that not only can I keep up with payments, but the extra cash will mean I can overpay and therefore reduce my borrowing in the long-run.
I feel they're being very unfair and in fact am hopping mad about it. I'm just writing my appeal letter - can anyone offer any additional advice?
I also feel that denying people who are in a position such as myself where they can more than cover mortgage fees – with consent to let, is not helpful in the current economic climate. Denying consent may force me to sell, in a position where I could be in negative equity. However, providing me with the consent would allow me to move in with my partner and reduce my existing debt.
HELP 0
Comments
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There is nothing either I or anyone else on this forum can do, its their choice whether to give you consent and they have said no. This letter and your evidence is unlikely to make any difference to the decision. Sorry thats not what you want to hear.
Sam"You've been reading SOS when it's just your clock reading 5:05 "0 -
NR won't be particularly interested in whether or not you can keep up your payments - they want the LTV to be sufficiently low before they'll give permission.
I suppose your options are to let it anyway (make sure your insurance isn't invalidated by doing so), to sell up, or get your partner to move into your house and sell up/rent out his own.0 -
NR's main interest is the mortgage being paid. By not giving you permission they don't have to acknowledge the tenancy. So if you fell behind with repayments they could repossess without having to keep the tenant on.
Before BTL became trendy, many people let properties without asking permission eg university lecturers going on sabbaticals, some people still do.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Thanks - that's helpful to know! It's annoying about the permission but I have no choice really but to go ahead and rent anyway. I've written an appeal letter but I know it's unlikely to make any difference. I will sell eventually - just not right now.0
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Since Northern Rock is publicly owned, you could/should contact your MP about it. As you point out, their stance is not just a problem for you but bad practice for the economy generally (and will not do anything for the housing market if lots of people are forced to sell now because they can't let).
I think you would have to be really desperate to consider letting without their permission. By doing so, you would be in major breach of the conditions of your mortgage and so would have to rely on their mercy or better nature -- and we know already that they don't possess such qualities! Seek advice first, to find out what would be likely to happen if you got caught.0 -
Voyager2002 wrote: »I think you would have to be really desperate to consider letting without their permission. By doing so, you would be in major breach of the conditions of your mortgage and so would have to rely on their mercy or better nature -- and we know already that they don't possess such qualities! Seek advice first, to find out what would be likely to happen if you got caught.
Its all guesswork as there hasn't yet been a repossession hearing for someone who had no arrears AFAIK. That in itself says a lot. No lender has risked going to court and asking for repossession where the borrower has kept up with repayments. (To quote the catchphrase: your home is at risk if you don't keep up with repayments, not if you do.)
I would guess they would write to you and question why you are letting. When you reply that you needed to and that you can't stop without breaching the tenancy agreement then in place, my guess would be that they would either file your letter away or give you consent and charge you the fee for doing so.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I would guess they would write to you and question why you are letting. When you reply that you needed to and that you can't stop without breaching the tenancy agreement then in place, my guess would be that they would either file your letter away or give you consent and charge you the fee for doing so.
Silvercar, why are you still encouraging people to let their property without permission, when you know that the renter will be given little or no notice to get out of the property if the landlord falls into arrears? Yes, the tenant will be able to sue the landlord and letting agent if this happens, but that is of little consolation to them at the time, when they and their children are put out on the street because the landlord got into financial difficulty and had failed to obtain consent to let from the lender.
The property will not be covered by the insurance if the landlord has failed to obtain consent to let from the mortgage lender.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
it's worth pointing out also that the tenancy agreement can be unenforcable if the lender's consent is not obtainedHappily an ex mortgage broker!0
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This is all really interesting!! I really have no choice, unless I sell with negative equity or keep up payments on a house I'm not living in. I may contact my local MP though, and I am really trying to gain consent first. There's definitely no question of me not keeping up payments on the mortgage. As I said, I will make overpayments once the house is let. The tenant will be safe...0
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catlover32 wrote: »This is all really interesting!! I really have no choice, unless I sell with negative equity or keep up payments on a house I'm not living in. I may contact my local MP though, and I am really trying to gain consent first. There's definitely no question of me not keeping up payments on the mortgage. As I said, I will make overpayments once the house is let. The tenant will be safe...
Devil and the deep blue sea.0
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