Northern Rock consent to let fees?

cheesyestniknak

Hi,
I recently like others, had a couple of grand knocked of my outstanding balance on the unsecured element on a "together" Northern Rock mortgage.
I rent the property out as I had to move due to work reasons and cant quite afford to sell it at the moment. When I initially applied to let it @ Nov 2011 up until when Northern Rock issued revised mortgage statements Feb 2013 (post payout) the annual consent to let fee (added annually to the outstanding balance) was £100.
When the revised statements were issued they also issued revised charges - consent to let being one of them recalculated on a case by case basis. I decided to inquire, and was horrified to find my fee going up to £750 per annum. I find this way over the top when you consider how much of the outstanding balance is paid off in a year regardless of any further charges.
Additionally for the £850 monthly costs - mortgage included I only receive £470 rent on a good month continually running at a loss with no hope of selling and saying goodbye to Northern Rock.

Any guidance is welcomed.:mad::mad::mad:

kingstreet

Probably no consolation, but you get only a 6% three year fix on consent to let with Halifax and Nationwide loads your rate by 1.5% pa for consent from them.

Unfortunately, you wish to vary the terms of your residential mortgage and the lender can charge for providing that variation.

cheesyestniknak

In the interest of fairness is there any avenue for complaint? FOS? from £100 in 2011 to being charged £750 2013 - 2014. With no change in my circumstances. Seems criminal to me.

_Andy_

They can charge what they want. Nothing criminal about it.

TheFactory

Unfortunately they can charge what they like and you have to pay it! thats the way it is, its not their fault that you took out a residential mortgage and are now letting it out is it?

That said I do feel sorry for you, whats the rate on your mortgage? The reason why I ask this is if you have a low % your not doing to bad, the CTL rate currently at Halifax is 5.49%, when you consider the base rate is 0.5%, thats a lot of extra interest just because its let out on a high LTV. How do I know all this? because im going through the same thing at the moment with Halifax and I would advise you to do what I am doing - over pay it as quick as possible to get down to a decent LTV for a proper BTL mortgage.

Thrugelmir

cheesyestniknak wrote: »

I decided to inquire, and was horrified to find my fee going up to £750 per annum. I find this way over the top when you consider how much of the outstanding balance is paid off in a year regardless of any further charges.

You received a couple of grand back. Now NRAM has to recover the money from its customers. No such thing as a free lunch.

grifferz

cheesyestniknak wrote: »

In the interest of fairness is there any avenue for complaint? FOS? from £100 in 2011 to being charged £750 2013 - 2014. With no change in my circumstances. Seems criminal to me.

If you look at other CTL issue threads on this forum recently, they are paying well over £750 a year, so what would your claim that it is unfair be based on? (other than, "they put their prices up!")

kingstreet

TheFactory wrote: »

the CTL rate currently at Halifax is 5.49%

It has dropped then. It used to be 5.99% fixed for three years with £999 fee.

gavinfarley

TheFactory wrote: »

Unfortunately they can charge what they like and you have to pay it! thats the way it is, its not their fault that you took out a residential mortgage and are now letting it out is it?

That said I do feel sorry for you, whats the rate on your mortgage? The reason why I ask this is if you have a low % your not doing to bad, the CTL rate currently at Halifax is 5.49%, when you consider the base rate is 0.5%, thats a lot of extra interest just because its let out on a high LTV. How do I know all this? because im going through the same thing at the moment with Halifax and I would advise you to do what I am doing - over pay it as quick as possible to get down to a decent LTV for a proper BTL mortgage.

Actually you are 100% wrong. It is not our fault that we took out a residential mortgage and now want to let it out. The mortgage companies made the mistake by granting us mortgages without any thought to the risk.

Our situation is that we bought the place as a couple. Now 6 years later we are a four (2 kids). It is surely against our human rights to force us to live in a one bedroom flat, and although not illegal, surely it is morally wrong for banks to cash in on the misfortune of others, especially when it was banks greed that put us there in the first place. As we can't afford £750.00 per year, our only option is to stick it on our interest only mortgage. The net result of this is that we are creeping further and further into debt each year with no sign of property prices increasing anytime soon.

Now, I know you mean well, but you can obviously 'over pay it as quick as possible to get down to a decent LTV for a proper BTL mortgage,' but some of us aren't in that position. We need decent information on our rights, if we were to let our property without consent, as this seems to be the only viable option for most people in this position. I can't see that it would be in anyone's interests, including the mortgage company to just repossess everyone's house who lets it out without consent. Especially if, like us, you have paid your mortgage on time, every month for 6 years.

Anyones views would be great

Thanks

family6

gavinfarley wrote: »

Actually you are 100% wrong. It is not our fault that we took out a residential mortgage and now want to let it out. The mortgage companies made the mistake by granting us mortgages without any thought to the risk.

Our situation is that we bought the place as a couple. Now 6 years later we are a four (2 kids). It is surely against our human rights to force us to live in a one bedroom flat, and although not illegal, surely it is morally wrong for banks to cash in on the misfortune of others, especially when it was banks greed that put us there in the first place. As we can't afford £750.00 per year, our only option is to stick it on our interest only mortgage. The net result of this is that we are creeping further and further into debt each year with no sign of property prices increasing anytime

Thanks

I feel sorry for your situation and it must be a shock to hear of such a huge increase but you can hardly blame the bank for you having a family.
We have 4 children and for the last 20 years have lived in the 2 (3 if you count the dodgy attic conversion) bed terrace that I originally bought when I was single. Until last year, (when we were finally in a position to change it to a 5 bed - I'm still amazed at how they did it) we had 2 children sharing and our youngest age 5 in our room.
What do you want the banks to do? Refuse to lend to couples of child bearing age, insist on contraception checks - that's as ridiculous as saying your human rights have been violated!

grifferz

gavinfarley wrote: »

...you are 100% wrong...

...not our fault...

...mortgage companies made the mistake...

...against our human rights...

...banks greed that put us there...

...interest only mortgage...

...no sign of property prices increasing anytime soon....

Anyones views would be great

My troll bingo card is now full and I am calling HOUSE!