Nationwide Mortgage - new fees and charges

murrayh

I had considered letting without consent, but to be honest I avoid doing things like as they tend to come back and bite you later on.
I guess I've got see what the FOS says in my case, but it seems from sam's post that they will side with NW.

Yeah thats not too good Karen, it might be worth staying put and getting consent, as long as base rate stays low then its not the end of the world.

I'm going to have a look to see if a better deal is possible, if not i'm stuck at NW.

The_Dentist

samwardill wrote: »

I just had reply from the ombudsman "I accept Nationwide's view that the letting of a mortgaged property represents a different lending prospect than owner-occupation. I also accept its explanation of how it has set the fee of an additional annual charge of 1.5% - and this approach does not appear out of line with that histoncally taken by other lenders in the market. The principle that an additional interest charge is payable for lettings does not seem unreasonable or unusual......

From an Adjudicator or a final decision by an Ombudsman

izools

murrayh wrote: »

I had considered letting without consent, but to be honest I avoid doing things like as they tend to come back and bite you later on.
I guess I've got see what the FOS says in my case, but it seems from sam's post that they will side with NW.

Yeah thats not too good Karen, it might be worth staying put and getting consent, as long as base rate stays low then its not the end of the world.

I'm going to have a look to see if a better deal is possible, if not i'm stuck at NW.

My landlady let without consent.

Now her lender have applied a 2% penalty.

Result? She's selling up as the new rate puts her monthly repayment well above the rental value of the property and I'm having to move.

You're quite right, it will bite you in the !!!. An the tennant, of course

albo2002

I spoke to Nationwide in January and was told that there will be no extra charges on my account this year (I'm on their SVR).

Yesterday I received a letter from Nationwide saying I have to confirm my buy to let property is still a buy to let property by July 31, and that the 1.5% rise will then kick in.

Is there anything I can do?

handytips

Yes why dont you remortgage it to a Buy to Let mortgage, there are plenty out there, some of them have arrangement fees of between 2.5-3.5% of the loan size plus you will have a valuation fee and solicitors fee. If you are looking for a fee free deal there are some available but the rate aint pretty

Vincenzo

handytips wrote: »

Yes why dont you remortgage it to a Buy to Let mortgage, there are plenty out there, some of them have arrangement fees of between 2.5-3.5% of the loan size plus you will have a valuation fee and solicitors fee. If you are looking for a fee free deal there are some available but the rate aint pretty

Very helpful.

Vincenzo

albo2002 wrote: »

I spoke to Nationwide in January and was told that there will be no extra charges on my account this year (I'm on their SVR).

Yesterday I received a letter from Nationwide saying I have to confirm my buy to let property is still a buy to let property by July 31, and that the 1.5% rise will then kick in.

Is there anything I can do?

Albo, when did you obtain consent and for what period?

albo2002

Vincenzo wrote: »

Albo, when did you obtain consent and for what period?

I think I obtained consent in 2008 for the forseeable future.

I'm sure there is nothing I can do, I just would have liked Nationwide's own staff to have been aware about it when I asked!

Thrugelmir

albo2002 wrote: »

I think I obtained consent in 2008 for the forseeable future.

Historically consent to let was normally granted for a period up to 3 years. As this covered most eventualities that arose.

murrayh

I'm thinking I will have to sign the consent form and take the fee on the chin as I cannot see another alternative other than leaving NW, I spoke to a solicitor and they pretty much said there isn't much i can do other than leave NW.

Not a great position, but again I don't want to be in breach of contract either.