secured loan letting property high admin fees?

jackie2029

Hi
Wonder if anyone can help. I feel like ive been pushed into a corner and given little choice and wanted to know if this is normal. I have a First Plus Secured Loan and i have just informed them of my change of address and i am letting my property. As the loan is secured on my house, they obviously need to know about it but when i received a letter through the post with an application form for 'permission to let' they now tell me i have to pay a one off admin fee of £100.

Do i have to firstly fill in the permission to let. When i spoke to them and asked what the consequences would be if i didnt fill this in, they told me i would be defaulting on my contract, they wouldnt do anything but they would have to inform my tenants who could take me to court as they would be classed as illegal tenants.

I am confused, firstly the fee is high, too high in my opinion as i am the one that has to hunt out all the details, mortgage statements etc secondly do i have to do this? as i cannot afford £100, just feel like i am being held to ransom is this right and should i just pay up? advice welcome please

Tixy

Have you already obtained consent to let from your mortgage provider?

Certainly its standard to have to obtain consent to let from your mortgage provider and often comes with a fee or a higher APR and I would imagine its likely to be the same for a secured loan for the same reasons as with a mortgage.

You could look through your original loan agreement to see what is stated on there and if it mentions what fees will be payable.

iolanthe07

You certainly do need permission to let, from anyone who has a pecuniary interest in the house. You cannot just go ahead and do it! You would need to look at the Terms & Conditions attached to the second mortgage to see whether the £100 fee is correct, but I suspect it very well may be.

_Andy_

"I am confused, firstly the fee is high, too high in my opinion" - totally irrelevant what you think

opinions4u

jackie2029 wrote: »

Wonder if anyone can help. I feel like ive been pushed into a corner and given little choice and wanted to know if this is normal.

Reading on, it looks more like you've inadvertently pushed the lender in to a corner.

I have a First Plus Secured Loan and i have just informed them of my change of address and i am letting my property. As the loan is secured on my house, they obviously need to know about it but when i received a letter through the post with an application form for 'permission to let' they now tell me i have to pay a one off admin fee of £100.

Do i have to firstly fill in the permission to let.

Yes. You put your property as security for a loan. By chucking a tenant in you make it harder for them to repossess if you don't make the payments. They have an absolute right to refuse such an arrangement. You signed an agreement that gave you absolutely no right to let the property without the consent of secured lenders.

When i spoke to them and asked what the consequences would be if i didnt fill this in, they told me i would be defaulting on my contract, they wouldnt do anything but they would have to inform my tenants who could take me to court as they would be classed as illegal tenants.

They could potentially repossess. If you got into difficulties with the payments they'd move to repossess faster than if you were living in the property.

I am confused, firstly the fee is high, too high in my opinion as i am the one that has to hunt out all the details, mortgage statements etc secondly do i have to do this? as i cannot afford £100, just feel like i am being held to ransom is this right and should i just pay up? advice welcome please

You are the one who is in the wrong here. You need to get your head round that, pay up and play ball.

Sorry.

dotdash79

If you can't afford £100 for this fee how will you afford the mortgage and secured loan when the house is empty for 3 months or worst the tenant doesn't pay and you have to get them evicted?

I hope you have protected the tenants deposit and have the right insurance and have a gas safety cert