Nationwide Permission to Rent

Moot

Hi

I have a 5 year fixed mortgage with Nationwide. In June 2009 we had to move areas for a new job, leading us to rent out our property. Nationwide granted us permission to rent it out.

Fast forward to this week and after looking over the mortgage documents as the fixed term expires in June. I discovered that Nationwide's permission to rent expired in May 2011. I had thought the permission had been granted for three years until the fixed rate ended instead of just two years. The property is till rented out.

I have done some research and discovered they have also introduced the 1.5% fee for "reluctant landlords" such as ourselves.

The question I have is, do we tell Nationwide and if we do face a penalty for letting our notification lapse?

Also can anyone clarify when the 1.5% fee would be levied upon us? Can they back date it to when the permission to rent expired?

I have read that Nationwide are agreeing to hold off on the charge until the fix term ends. Is this also the case?

Moot

Sorry for bumping this thread but I am approaching Nationwide this afternoon and I would rather contact them with a bit more knowledge on this subject if anyone has any to offer.

Fuzzyness

Nationwide after initially informing its customers who had consent to let (such as myself) that they were going to add a 1.5% charge on the mortgage after the end of the initial period of conent to let, then suddenly decided that this would not apply why you were still in your fixed rate period. Our initial three year period expired and we renewed it no hassles and no charge either. our fixed period ends march 2013 at which point they will start applying the 1.5% charge and it is at this point that we will be transfering to a proper buy to let product.

so in short, NW will charge you the 1.5% once your fixed period has ended. in the interim seek their continued consent to let and then remortgage once you're out of your fix and go on to a buy to let mortgage.

Moot

Thanks for the reply. I had seen this on a few articles I had read but could not work out if it had suddenly become policy to charge after the fix had ended or whether people had complained and got the fee removed for the term of the fix.

Your message has given me slightly increased hope that we can see out the fixed term on the same rate. As I was dredding contacting them given that the terms on their website for this are a bit vaugue. I just hope they don't try and penalise us in some way for the mistake we made.

I can live with the 1.5% increase after the fixed term expires as our mortgage will drop significantly at that point as long as the BMR stays the same for a while.

This kind of stuff makes me even more desperate to sell, even though we can't get shot of the house. I really don't want to be a landlord.

DannyboyMidlands

So sell it then. Just have to price it at a level that people are willing to pay.

Moot

DannyboyMidlands wrote: »

So sell it then. Just have to price it at a level that people are willing to pay.

Would love to and we have already tried a year ago. It was priced competitively against other houses in the area and it is in pretty good condition considering we rent it out. However we only had 4 viewings in 2 months.

Nothing is shifting in the area the house is in, unless it is REALLY cheap which we can't afford as we don't have enough equity.

Catch 22

Moot

Well I just had a good discussion with Nationwide very surprising and they had us down on their system as having consent to let until our fixed deal runs out, which overrides the letter stating that it ended in May. At which point we will be moved to the BMR with the 1.5% added on top or able to change product/bank.

We also will not be paying the 1.5% until the Fixed deal ends which is good news.

Now for the next headache, what to do when the our fixed deal expires.

Fuzzyness

Moot wrote: »

Well I just had a good discussion with Nationwide very surprising and they had us down on their system as having consent to let until our fixed deal runs out, which overrides the letter stating that it ended in May. At which point we will be moved to the BMR with the 1.5% added on top or able to change product/bank.

We also will not be paying the 1.5% until the Fixed deal ends which is good news.

Now for the next headache, what to do when the our fixed deal expires.

if your rate reverts back to the SVR and then add the 1.5% and if this is lower or better than what you are on now or what you can get by switching to a BTL i'd stay where you are. the fact that you would be paying the 1.5% charge would guarantee you the consent to let you would need to have tenants in the house. check with a broker when your fixed rate is coming to an end and see whats on offer.

grandfurniture

Nice information here... Thanks for posting....