Nationwide increase monthly payments on fixed rate deal

Harry_J

Pincher wrote: »

There is a premium on Buy To let mortgages.
If consent to let was free then every landlord will want to get a residential mortgage instead.

It wasn't free. We paid a premium at the time. That's not the point though is it? We signed a fixed rate deal where the BS has full knowledge of the situation. They are now varying the monthly payments. What's to stop them introducing a new extra exit charge too?

Harry_J

property.advert wrote: »

If this term is not in the original agreement or in the variation of that agreement made when consent was given then I do not see how it can be introduced. They cannot arbitrarily introduce extra charges. What if they wanted to add 25% for instance ? the argument is the same.

Either it is in the T&C or it is not.

Thanks. If they are allowed to do this, then they could do exactly as you say. Throw in a new exit charge too and they could have you by the short and cs.

jubjub

Hi Harry
I also have been informed by Nationwide that my mortgage will increase by something like £30 a month. I don't know your circumstances but for me I took out my mortgage with them in 2003 after splitting up with my ex-wife and extending the mortgage to pay her off. I have since met my partner who I now live with and as a consequence have rented out my house for the past 6 years or so. I chose to do this as if anything was to go wrong in this relationship then I would at least have a property to move back in to. So why am I being classed as a buy to lt landlord? Although I do see the present arrangement as an investment it is more of a safeguard.

monkeybiscuits

Hi Harry. I used to work for Nationwide. I stress 'used' because I don't want you to take what I say to be their official line on the subject, and it wouldn't be right for me to suggest my word is any better than anyone else's. Anyway, from what I remember (and I should also stress mortgages was only one of the things I dealt with, so again don't take me to be an expert) the policy was that if someone wanted to let their property, as long as they weren't in arrears, they would get permission to for provisionally three years. This was done quite specifically so the society could review the arrangement after three years and, for example, say you may no longer have this residential mortgage if Nationwide didn't think you were using the mortgage account as a residential customer, and instead more like a landlord/business customer. As far as I am and was aware, this was entirely legal and legit. Furthermore (and this is the important bit), as with pretty much anything nowadays which is a special arrangement to something, especially, as in this case, something which is seriously generous to the customer, words to the effect of "we reserve the right to remove/alter the conditions of this amendment to your contract (ie the temporary letting arrangement, not the fixed or tracker or base interest rate) at any point" were in the letting contract, which you had to sign. I suspect you're mixing up the mortgage contract (which they are certainly not allowed to change, unless you start to abuse the account) with the temporary amendment contract (which they are).

Again... everything I said may not be at all relevant to your particular case, but I hope some of it helped a little.

ILW

It appears the fixed rate was on a residential mortgage. The terms are different now you have in fact converted to a BTL product.

jubjub

They knew my situation when I signed up to a 5 year fixed rate 3 years ago and due to the drop in interest rates they've had it their way but am I complaining? No. I accepted the terms back then and have honoured them so why can't they? This really gets my goat!!!!

NeilJ01

I had exactly the same letter today. We were allowed to let out previous house in 2004 after we contacted the Nationwide, still retaining our 'domestic' mortgage.
Again, like others above, we took out a fixed rate in 2007 for five years so we knew what costs would be involved. I don't recall the Nationwide informing us that this letting arrangement on a domestic mortgage was only valid for 3 years.
I will have to read the small print on whatever we signed to check.

TREVORCOLMAN

Nationwide - Proud to be different!

Hopejack

jubjub - you are a btl landlord whether you like it or not, you rent out your property and I presume take a rental income every month for the sake of it! You only cease being one when you no longer rent it out!! I only hope you see your responsibility as a landlord as serious and that you abide by the minefield of rental and tenant law out there these days - saying it's a 'safeguard' to a judge wouldn't wash I'm afraid!

To to the OP - you'll need to check your terms and conditions carefully as per cj25's post.

katskorner

I had the same letter. Nationwide have been happy with me renting out for 8 years but then this letter arrives. It seems to be a blanket charge. It seems a bit sudden and extreme.