Northern Rock nightmare

Marnie_M

I have applied for a 'consent to let' from Northern Rock as I want to rent my house above board, I saw on here that someone paid NR £250 for this and it was fine. My consent was rejected today as my 'loan value is more than 70 percent' and they have asked me to pay off a whopping £37k to 'reconsider' my application! Obviously it appears that common sense has elluded them. Any advice if they don't change their tiny minds anyone?

pm2326

they are not obliged to agree consent to let and can reject any application if it doesnt meet their criteria

Marnie_M

Hi, yes I know but it is ridiculous that I can't rent it out. I can afford to pay the mortgage if it's not rented (but why do that if it's empty) and I have offered to pay more off per month if it's rented. I'm waiting for them to get back to me again but expect their decision won't change. Could they repossess if I rent it regardless?

Bf109

........it is ridiculous that I can't rent it out..................Could they repossess if I rent it regardless?

No it isnt ridiculous. Your mortgage was offered on condition it would be your primary residence. You are less likely to default on a loan on your primary residence than on an investment property. Thats why the conditions are more stringent on lets.

As to if they could repossess... I dont know, you would have to read your contract but your house insurance would almost certainly be void, meaning that if your tenant caused a fire you would lose everything - and still be left paying the mortgage.

SquatNow

Marnie_M wrote: »

Hi, yes I know but it is ridiculous that I can't rent it out. I can afford to pay the mortgage if it's not rented (but why do that if it's empty) and I have offered to pay more off per month if it's rented. I'm waiting for them to get back to me again but expect their decision won't change. Could they repossess if I rent it regardless?

They can order you to pay them their money back, and then when your can't they can reposess.

They could also ramp up your interest rates, and charges, take you first born child etc etc

Basically you'll be entirely at their mercy.

Just.... don't do it.

Marnie_M

My insurance is also void if I leave the property empty for more than 3 months. It is frustrating for me as I have been paying the mortgage for 3 years on my own, got more in debt despite having a reasonably well paid job for the area and no life, and my, and everyone else's tax is bailing this company out due to their financial incompetence. Now I want to move in with my current partner but don't want to sell as it's my security and moving out means I can pay more off it. So am I forced to stick or sell?!

Bf109

Marnie_M wrote: »

............and everyone else's tax is bailing this company out due to their financial incompetence. ....

I'm sorry, because of whose financial imcompetence?

Marnie_M

Northern Rock's. Unless you are trying to imply I am financially incompetent. Clever. I see what you've done there.They (NR) were lending money they didn't have, to people who couldn't pay it back. They lent money to me and I can pay it back, as I have done over the last 3 years, not £37k up front. If you have nothing constructive to say to someone who is new on here and simply asking for advice on things (that aren't in my mortgage contract by the way, obviously I looked there first) then why bother to comment? You are just going to aggravate people.

Bf109

Marnie_M wrote: »

Northern Rock's. Unless you are trying to imply I am financially incompetent.

Way to go Sherlock!

Northern Rot is in trouble because it lent money to the financially incompetent people.

You were lent money by Northern Wreck.

Why are you having to rent out your home all of a sudden? Why cant you get a BTL mortgage from another lender? Why are you asking for financial advice on teh internets?

Could it possibly be because you are financially incompetent?

Its not a massive leap of logic, Watson.

SquatNow

I see his point but I don't agree with it.

Northern Rock leant money to far to many people on far too high LTV.

I'm not implying you're financially incompetant, and I don't know the full circumstances... I'm simply pointing out that Northern Rock were basically throwing money at people, many of whom weren't at a stable enough time in their lives and carrears to be buying a house.

Marnie_M

If you read the above, I am relocating to live with my partner who owns his house. I want to keep my house independently and it's fixed. So Einstein, you have jumped to all kinds of conclusions and been unnecessarily unpleasant and unhelpful. Maybe you should take some of the money you have saved and get a life and some English lessons.