Charge by lender for permission to let flat

paulsm

Hi , I am about to move and let my flat and was told to inform my lender , I rang the A+L this morning and was told I had to pay them £120 for their permission to let the flat. It dosent sound right to me , perhaps it is any advice please?

herbiesjp

Why does it not sound right?

pipee

Sounds very generous to me, are you sure they are not going to add 1% to your loan rate as well?

paulsm

I dont understand why I have to pay to let my flat out , I will still be paying the mortgage so whats different , do all lenders charge for permission?

payless

The rates and setup fees that apply to a residental mortgage are lower than those generally applied to buy2Let or (semi) commercial arrangements,

A normal mortgage will have consitions that it is based on owner occupation

For dealing with such a request , a charge of £120 is average , if not on the light side compared with others

Are they increasing your rate!

It would likely cost you a lot more if they decided that they did not consent, and instead, if you let - requested you repay the loan in full

paulsm

Thanks for the advice , got to check these things , never know .

meanmachine_2

B2L mortgages carry a higher rate because, if the lender wants to sell, there's the issue of how to deal with the tenants, not just the owner.

More than likely you'll see your repayments go up, on top of this flat charge.

D'oh!

DMDz

Abbey wanted £400+ from me for the same thing, and I only had a few months of a 2 year fixed rate mortguage left!