Nationwide - 1.5% Consent to Let Charge

Fuzzyness

just a quick question to any nationwide mortgage holders who have/had consent to let. you will no doubt recall the stance that NW took a couple of years ago informing their customers that they would be applying an additional 1.5% charge for the privilege of having their consent to let our your property. well has anyone actually paid it? our fixed rate is ending at the end of February and as far as i recall the charge would kick in then. and again its my understanding that this would be applied in addition to the SVR. Now if my understanding is correct if the current NW SVR is less than 4.18%, i'm actually going to be paying less than i am at the moment.

so has anyone paid it or is anyone considering paying it? we are looking at remortgaging options anyway as i'm sure there are better BTL to mortgages out there at the moment but as a short term stop gap i'm considering just paying it until i leave NW for good. any thoughts welcome.

kingstreet

AFAIK the penalty is being applied.

The base mortgage rate for those who took out their mortgage prior to 30/4/09 is 2.5%, so they would pay 4.0%.

For those rolling onto SVR, 3.99%, the rate will be 5.49%.

Fuzzyness

thank you Kingstreet

in respect of the SVR, my current fix is 5.68% so i would be better off but i'm sure there are better btl deals than 5.495 out there.

kingstreet

There may well be.

Research such products and take the rates and fees into account for each, then compare them with your CTL option.

That way you'll know if you're getting the best all-round deal for you.

GMS

OP how much is your current mortgage? What is the property worth? How much monthly rental income? What is your salary?

Lower rate BTL mortgages tend to have high arrangement fees.

May well be better rates but you need to ensure it is a better deal overall. A broker may be useful as many BTL mortgages are broker only.

Fuzzyness

Thanks GMS. I'm speaking to a broker as well and the initial trawl that he has carried out has thrown up a product that we would be happy with. part of the reason for the original question is that we're looking to release some equity from the btl to buy a property for us to live in. we havent seen something we want to buy for the amount we can borrow yet hence wanting to hold tight on remortgaging the btl and doing this at the same time as buying our home. slightly convaluted i'm afraid.

Thrugelmir

Fuzzyness wrote: »

part of the reason for the original question is that we're looking to release some equity from the btl to buy a property for us to live in.

You may find some lenders aren't keen on the source of the deposit, equally nor the purpose of the equity withdrawl.