NRAM Permission to Let & getting 2nd Mortgage

Spooks123

Hi Carlw

If I describe my situation to you, I hope it will help in someway. Of course, it may not...bare with me. (I think it backs up alot of what Thrugelmir is saying...)

In 2006 I bought one of the notorious NR Together Mortgages with NR and lived in the property. I relocated for a job in 2008 and got CTL permission from NR to rent out the house. It's been rent out ever since. My "toxic" mortgage was moved to NRAM when the split was made. Now on 4.79% SVR and no point in re-mortgaging that property because I can't find a lower pure BTL mortgage product out there. The house is on the market for £135K and I still owe £99K on the secured mortgage.

I now live in a rented property and about 3 months ago, NRAM wrote to me saying that I didn't have CTL on the house I rent out and that I was in breach of the terms of my mortgage. At first I argued with them (waving my CTL letter from NR in 2008 in their face) but then they pointed out that this was only ever an annual arrangement and that I needed to apply to them every year to have my CTL approved. I would need to pay £150 fee for this privilege. (I think the fee was £150...could've been a bit higher or lower)

So we agreed that I didn't need to pay the £150 fee for the years I'd missed but that I should start from now on. So I went through the CTL application process where there were very clear questions about my savings / why I was letting etc. which I just stuck a big yellow post-it note over and wrote something like "re-located because of job....property already been rented out since 2008...see NR agreement letter attached...see rental invoices from tenant attached..."
The CTL was granted for one year.

Now, I also have a savings pot (a pot that is probably big enough for NRAM to be interested in...) but my wife wants to buy a house with the money. So, irrespective of whether this is a wise move or not for us (try telling her to do without a 4th bedroom for another 2 years...), I could well find out very soon during any new mortgage application process if and how having this 'other' property will be perceived by any new lender.

From my initial enquiries - decisions to lend in principle...not full blown written mortgage quotations - it seems all lenders want to know is our income and our outgoings. But I am not naiive enough to think that during a more closer examination of 'risk' ie. what if your tenant couldn't pay you? etc. that a lender may steer clear of us.

Like I said, not sure if this helps, but hope it provides you with a few hints on how you may want to play this.

Cheers

gwernybwch

Thrugelmir wrote: »

Have you had a written formal offer or a decision in principle? There is a considerable difference.

It says "Approval in Principle". I haven't submitted an application form (nor paid the fee) or found a property that I want to put an offer on, so it isn't a 'written formal offer'.

The application form has been fully populated with the information that I gave and resulting in the 'decision in principle' being produced, so hopefully that should mean that the application would more likely be accepted.