Britannia Pulling Consent to Let in Middle of Fixed Term

jawster

Not sure what to do as Britannia (before becoming Co-op) used to be helpful but now seems more strict.

We have had consent to let from them for 3 years which is pretty good and very grateful for it. We left UK for what we thought was a short time that turned out a lot longer.

Anyway when our last term ended late 2009 we asked if we can get a new 3 year fix even though we are on "consent to let".
They told us no problem, we thought great and it all went through okay.

However a year later they've written to us saying that they don't normally give consent to let for more than 2 years (first we've ever heard about this limit from them) and so they will no longer be giving us consent from April 2011 when our current tenancy runs out and a full year and a half before our fixed term ends :eek:

Where do we stand on this?

They are forcing us to sell - ok fair enough they've been generous with consent and it's not the end of the world if we have to sell as we won't be in negative equity BUT how is it fair that we are effectively forced into paying an early redemption penalty of 2%!

Shouldn't they either give us consent to let until the end of our term or waive the early redemption penalty as we would never have gone with a fixed term if we knew there was a time limit beforehand.

I'm in process of writing them a letter about it but wondered where I would stand in terms of taking it further if they stick to their guns on this.

Thanks

GMS

You are in a residential product with consent to let added discretionary.

Whilst it may seem harsh for them to do this you entered into a fixed residential mortgage, not a Buy to Let.

What is the property worth?
What is your mortgage balance?
What is the monthly rental income?

jawster

Thanks for the reply GMS.

I do understand it's discretionary and am fine with aspect as long as they are clear with me about their limits before I sign a 3 year fix.

What I feel aggrieved about is that they are changing the rules in the middle of my term - the only bit in my paperwork that relates to the consent to let states that "no unreasonable request will be refused".
I suppose it's what they define as unreasonable.

If they had just mentioned to me when I fixed - "Oh but you do know that the max will consent is 24 months" then I clearly wouldn't have fixed as there would be a 100% probability that they will not be providing consent for some part of my term.

The property should sell for about £165k to £175k and we owe £150k with a rental of £650 per month.
The fix we're on costs approx £480 per month so 135% rent to mortgage - their benchmark is 125% so it's not that much over which may be why they targeted us.

I don't mind selling at the end of their consent - just extremely narked I'm forced to pay the ERP when I could have easily stayed on the SVR if they'd given me a heads up!

opinions4u

Do you have anything in writing that says they will continue to provide consent while you remain on a fixed product?

If not, you don't have a leg to stand on.

You are relying on their goodwill. Complain firmly, but politely, and ask them to be more flexible either with the consent to let or the ERC.

GMS

With those figures you would not be able to remortgage to a Buy to Let.

The term 'no unreasonable' is ridiculous. As you correctly point out how can this be defined? One persons reasonable is another persons unreasonable.

Personally I would appeal based on what you have said. Either waive the ERC or allow Consent until end of term.

Good Luck with it

jawster

Thanks for replies.

Grrr...yes it looks like I will have to rely on their goodwill!
Will update on how it goes but it looks like they've got me between a rock and a hard place on this - just thankful we shouldn't be in negative equity by sell time ...touch wood!

jawster

Had a thought...

Do you think they would look more favourably on my request to either waive the fee or give consent to end of the term if I offered something in return?
E.g. Swapping to a repayment mortgage for the rest of my time with them or even a lump sum payment to reduce their risk as we have some savings aside?

madeupname1

do they have a buy-to-let product that they are willing to let you move to?

in my case, when the consent to let period ran out, the mortgage company simply said that they would raise the interest rate payable. in my case that was no problem at all.

jawster

Just to update.
I followed advice as above and wrote them a letter asking for either continuation of consent to let until end of my term or a waiving of the ERP.

Much to my surprise and extreme pleasure...they have kindly agreed to extend the consent to let until the end of my fixed term :T.
Thanks for the advice guys and I'm glad that with some banks it's not a total 'computer says no' mentality!!
Well done Britannia!!

Engeroosi

I'm in a similar position with Nationwide, I took residential mortgage with no plans to move and have to rent it out. But they have now informed me that as of may next year they are putting 1.5% on top of an already high 5.64% interest rate, Im fixed until may 2012 with ERC so cant just remortgage. I believe others are in similar position to me, anyone any ideas what I could do or ask for