Consent to let

bitsandpieces

Another option is to sell the house (whether by reducing the price further, or working out what's stopping it from selling). It looks like you're facing a choice between selling at a loss or (if you can get CTL) renting at a lousy return, which sounds like it's got a good chance of also turning into a loss. You pay your money and you take your choice...

For what it's worth, I sold my flat a few years ago at a (small) loss. I'd have struggled to get CTL. If I had, return would - at best - have covered expenses each month. I've recently seen a neighbour selling - the asking price is my sale price. The decision worked well for me - I'd have lost more on the flat if I'd kept it and rented, and had extra hassle - though if prices had shot up I'd be kicking myself now. What option is best depends on your attitude to risk and investment.

arno1975

G_M wrote: »

I don't believe this is a change of contract, unilateral or otherwise.

The right to let (or apply for and receive CTL) will not have been written into the contract.

It will simply have been the company's policy at the time, and the policy has now changed.

So I am right. A ML can do pretty much what they want on the back of the " we have the right to change our policy at anytime, unilaterally without consulting the customer", even if the new terms goes against what was agreed in the first place. I respect the fact any company should be able to change policy but what protections and rights for the customer. It is a shame that the customer has not got the same margin of manoeuvre!

jjlandlord

G_M wrote: »

I don't believe this is a change of contract, unilateral or otherwise.

The right to let (or apply for and receive CTL) will not have been written into the contract.

It will simply have been the company's policy at the time, and the policy has now changed.

It's difficult to comment further without seeing all the details, but OP mentioned "We are totally disguted as we had chosen that particular product because it allowed letting", which could suggest that, apart from the general company policy (which can indeed be amended as they please), it was part of the deal.

OP should read the details of his mortgage to check the exact situation. Perhaps there is confusion there on his part.

Thrugelmir

arno1975 wrote: »

So I am right. A ML can do pretty much what they want on the back of the " we have the right to change our policy at anytime, unilaterally without consulting the customer", even if the new terms goes against what was agreed in the first place. I respect the fact any company should be able to change policy but what protections and rights for the customer. It is a shame that the customer has not got the same margin of manoeuvre!

Consent to Let has never been a contractual right in mortgage contracts from any lender. CTL is granted at the discretion of the lender, and can be offered on any terms they wish to offer.

arno1975

You are probably right and the ML is probably doing nothing wrong. They never do!

We were just missold a product that does not do what it was supposed to do. Rings a bell. PPI. Obviously, the guy who sold it to us did not clearly state that ML could change the policy......and we could at any time not be able to let it out.

jjlandlord

arno1975 wrote: »

We were just missold a product that does not do what it was supposed to do.

Well, that's the key isn't it? What does your contract say your product "is supposed to do"? (c.f. my previous post)
Anything written down there cannot be changed unilaterally, the rest can.

arno1975

I checked all my mortgage docs. On particulars, there are no mention of the possibility of letting out. However, on the C&G mortgage handbook, in the "Charges" section, they say and I quote "£225. If you wish to let the property six months or more after your mortgage started. Earlier than six months, you must switch to a BTL mortgage and you may incur costs,............and fees on the new one". Also, on the header of that section, they say and I quote "We will send you an updated list every year unless none of the charges has changed." We have never received anything. Surely, if they cancel the possibility to let out your property after 6 months, and hence the charge, then, according to that statement, C&G should notify that change to the customer, shouldn't they?

kingstreet

SuzieSue wrote: »

I know someone who had a fixed rate mortgage with Halifax and was able to get CTL with no problems at all a couple of months ago

I don't think he would have been able to get CTL if he had been on a variable mortgage.

As this person was already in a fixed rate, Halifax will leave them in that rate until it expires. At that time, your friend will be given the option of moving back in the property or accepting one of two three year fixed rates at around 6% with a fee of around £1,000 to £1,500 for continued CTL.

Had he been on the Halifax SVR he would have been given one of the two deals I mention, now.