NRAM Charges

wartcat

We were recently inquiring to rent out our 1 bedroom flat (which is too small for our family) as we are unable to sell in the current financial crisis. We have a mortgage, unfourtunately with NRAM, and we needed a consent to let. After going through the long process of them agreeing a CTL at a cost of £100 per year administration fee as our loan to value meant we owe the same amount as the property is worth, they have recently written to us to inform us that CTL fees have been increased (along with other fee changes). I phoned them to see how much it will now cost us per year to let our property and they estimated that it could be at least £750 per year(possibly anywhere up to £1300 per year), not to mention the fact that they could even reject our CTL next year or in subsequent years. They say the increase in prices is due to "increased risk", I dont see how an administration fee can increase by 650%, surely its still the same paperwork being carried out? Is there anybody who can advise us on this, We are also unable to move our mortgage to another lender as we would need a huge deposit just to stay in the property we are no longer able to fit in as a family. Is anyone else having this particular problem with NRAM? TIA

Thrugelmir

Consent to let is totally at the discretion of the lender. There's no guarantee that letting the property will be profitable. Nor that property prices won't fall in your locality. So NRAM will impose whatever charges it thinks fit in terms of risk in granting the consent.

The financial crisis has little to do with you being unable to sell the property. What matters is the price. Keep progressively reducing the price until it sells. In the mean time save as hard as you can. Overpaying the mortgage if possible.