NRAM's Consent to Let Fee increase

Fraulein_Kunst

have to clarify some things here that some people do not seem to be grasping

- if you are applying for/have CTL, you originally signed up for a residential mortgage.

- Therefore you chose (whether you wanted to or not) to change the terms of your mortgage. The reasons are irrelevant, the fact remains the same.

- As your contract was residential, a lender is under no obligation to change anything (if CTL is in your T&Cs it is the right to apply, nothing would ever be guaranteed)

- CTL is temporary, if you want long term you need to remortgage to a BTL/sell at a loss if that's your circumstances - the lender is not obligated to resolve your financial issues or help you delay the inevitable

- You do not get special treatment for paying your mortgage on time and in full, that is your contract

- It is your responsibility to do everything in your power to find an exit strategy during the time your CTL is running. Overpaying for example to increase your equity/reduce your negative equity (much guidance on this website)

- CTL fees are reasonable as if you applied for BTL mortgage your fees would be higher, the interest rate likely to be higher, the LTV has to be lower. A CTL fee is what the lender charges you for essentially dodging the costs BTL customers have already paid

- some lenders have relationships with mortgage brokers that could offer you free advice on remortgages that could be better
(I believe NRAM has this as they CANNOT offer additional lending/products, so are not refusing BTL mortgages, they just cannot do that)

- Seek out independent financial advice to see if you can be doing other things to improve your situation



Not a response to anyone directly, just overall based on many of the misguided and fairly naive comments and assumptions i have read.

Hope things work out for everyone, but a petition etc will not work as NRAM have not done anything wrong.

Alphaomega

I am always perturbed by the total lack of empathy of some people that don't experience the problems faced by others and adopt a self righteous attitude.

But in this case those that argue that NRAMS actions are right or reasonable are totally and utterly WRONG.

This is morally wrong if not perhaps acting beyond the scope of what they believe they can do. I should point out to those that tediously quote the 'rules and terms of the contract' that these can be reversed, changed and overridden if they are unreasonable or just by protest.

They are seldom written with the best interests of the customer and often stretch fairness to and over the limit, commercial society and its laws written to benefit those with capital must be continually challenged. The first point is is this MORALLY right, then if not you break the rules and have them rewritten until it is. This has been a major element in every miss-selling scandal and corporate con in the last few decades and its not over yet. if PPI can be challenged so can this and every other corporate con.

NRAM originally supplied a mortgage that could be used as a consent to let mortgage. In order to achieve this there was a administration charge, that more then covered the small amount of administration required.

Many people took a decision on this basis, as it was residential initially most people are not commercial landlords, but ordinary people that needed to move and couldn't sell their houses fast enough or in an economically viable way.

If this fee was to be 5 times greater per year (or 15 times over three) at the time this would have changed their decision. If they were aware that it could be arbitrarily increased it would also have changed their decision.

it is TOTALLY irrelevant what the fees are on other products as these would never have been considered if available.

NRAM have absolutely no justification for increasing this fee apart from making money or trying to reduce their mortgage book, which is what they have been told to do. There has been no increase in their costs at all.

Thus the reason is immoral and it is punishing the ordinary citizen again for the excesses of those who created the economic crises.

I have already been told blatant untruths about this being down to the regulators and thus NRAM are aware they are wrong enough to shift the blame.

I intend to fight this all the way to court and let a judge decide what is right or wrong.

If nothing else the cost, time and bad publicity incurred by this may make out corporate entities think twice before cynically stretching their rules to exploit their customers.

if anyone else is going down the fight rather the flight or submit path then let me know.

Alpha

Alphaomega

hooperman111 wrote: »

Just spoke to NRAM two days ago about consent to let on my house.
They said that they have changed the rules recently - you can do it for one year only, then after that its move back in, leave empty, or get a mortgage somewhere else!
You have to book a 45 minute phone call with a "mortgage advisor" so no form to fill in so far.

So are you saying that:-
a. They are increasing the cost.
b. They are in fact withdrawing the ability to do it altogether?

One year of milking the mortgage owner then that's it.

It seems most people will have no choice but to fight this.

Alphaomega

I have started the process of fighting this with NRAM by logging a complaint and demanding various documents.

Note that NRAM may be subject to the freedom of Information act as it is a government owned organisation and thus we can obtain the internal documentation behind this decision.

They have also confirmed that they may withdraw the consent to let entirely next year so you may be pouring your money down the drain.

I suspect they have not done it yet, in order to assess the level of resistance they will get and because they are uncertain about the strength of their legal position.

They have bounced my complaint upstairs and now there is an 8 week response time. The fact they could not just state you have to pay it and close the complaint in their normal response time is odd if they are certain of their position. Although it may well have been the robust (but polite) way that I responded.

I recommend that everyone lodges a similar complaint and we compare notes.

Kerbie33

Hi yet again it's another question about NRAM. We have applied for consent to let sent off application form and everything they asked for and are now awaiting a reply in writing. How long does this normally take. We had a letter saying that the recommendation was to rent out property for 12 months. Do u think we will get consent. If we don't what can I do? We have a rented house waiting for us that would be perfect for my growing family as where we r is way to small. Any advice would be great thank u

diw2015

Sorry posted in other thread too.

Does anybody have any recent consent to let with NRAM? Do they do it for any more than a year at a time?

We were looking to sell up and upsize but are in negative equity. We wouldn't be looking to make money on the rental and the new property we would buy would be easily affordable.