Consent to let charge, £1,250 per annum!!

thinkpositive1

I have just been given "consent to let" from my lovely mortgage company who then informed me the "admin fee / charge" would be £1,250.

I said "presumably this is a one-off" and they said "no, it will be an annual charge" assuming each year they have the decency to approve me letting out my house year on year.

Over £100 a month's cost and for what exactly?

Anyone been charged similar and / or know if there is a way of challenging this outrageous cost?

BitterAndTwisted

No, there's no way of challenging their decision. Presumably you negotiated a residential mortgage based on the understanding that it was going to be your permanent home. It's not now, so they could insist you apply for a Buy-To-Let mortgage which would require a 25% deposit and a much higher interest-rate. That's if you could qualify for one.

theartfullodger

You have asked for a very large loan for business purposes.

That is their offer: if you don't like it find another lender or another business area.

It's the market: part of the delights of capitalism.

Cheers!

HAMISH_MCTAVISH

thinkpositive1 wrote: »

this outrageous cost?

Yes, it is outrageous.

Completely and utterly so.

This latest scam the banksters have dreamed up is truly egregious, as it affects so many people who need to move for work or family, but may wish to return to their home one day in the future.

CTL used to be granted as a matter of course, with only minor admin fees. Banks understood that people's circumstances changed. They may need to move overseas to work for a few years, or be posted elsewhere in the UK on assignments, or whatever.

Now that mortgage rationing is endemic however, and there is virtually no competition in the market, the greedy banksters know they have you over a barrel and they're milking it for all it's worth.

Sadly, it will stay this way until proper competition in the market is restored, which won't happen until the rules on bank capitalisation are changed and the BOE injects sufficient liquidity into the economy that it actually flows through into lending.

Anyone suffering because of bank actions like this should complain to their MP.

It won't help you, change will be slow, but it might help others like you in the future if enough pressure can be brought to bear.

Takeaway_Addict

That is alot. I pay £100 a year.

jamie11

The answer has to be to build the charge into the rental price, that will mean another load put onto the tenant's shoulders, very short sighted in my opinion.

SuzieSue

OP, out of interest, who is the lender?

Thrugelmir

thinkpositive1 wrote: »

Anyone been charged similar and / or know if there is a way of challenging this outrageous cost?

The lender has priced the charge at this high level so that you take your business elsewhere.

There's no challenge. As CTL is totally at discretion of the lender.

kingstreet

£100 a month?

If they'd stuck 1.5% on the rate, or stuck you on a three year fix at 6%, as two well-known lenders do in return for CTL, the cost could have been a lot higher...

abankerbutnotafatcat

Thruglemir is correct; they don't want your business. They obviously consider it non-core for some reason, all lenders have reevaluated (and continue to reevaluate) what they do in recent years. And like all businesses they incentivise/make themselves attractive to the business they decide they want - you should have seen the variations in carpentry quotes we got recently!

But the good news is that it's a great time to remortgage, a hassle I know but it seems definitely worth it in your case.

Btw my lender charged me a one-off fee of c£100 for a non-time limited CTL.

blckbrd

It is a lot of money.

Banks may be morally bankrupt but they are not daft. Why should landlords be the only ones profiteering from the BTL industry?