Wanting to keep my excellent 'lifetime tracker' mortgage

Let_Us_See

Personally, I believe you should thank Nationwide for their very reasonable offer!

Dave_Ham

When you post something that clearly everyone disagrees with, then you have to take stock and put your personal motivations to one side.

It is not about effort etc. Nationwide honoured the agreement as they were pretty much duty bound too. You are the one attempting to vary that agreement and this comes at a cost.

I would personally feel lucky that supported by a decent mortgage you have got yourself in a really strong position and now you are entering commercial territory.

This is not meant to be patronising, but your emotions on the matter are probably clouding your judgement; well the way I read it, it is.

holly_hobby

Lets cut to the chase - letting a property is officially semi-commercial business, therefore residential rates are neither available nor appropriate.

But, lets look at it the other way (although this isn't the actual basis of NWides loading as I've already touched on) ...

How would you feel if as a Nationwide customer, with this tracker mge on your home that you live in, that nwide were also freely allowing people with the same deal, but whom no longer lived in the property and were using it as a business enterprise instead, to be charged the exact same low rate of interest as you ....this being despite income being generated from the unit and the increased risk exposure, from both tenant and mortgagor, given that the mortgagor (in times of financial difficulty) will give generally always give preference to servicing the mge on their own home before any 2nd mge on a property they don't actually reside in.

I can tell from the tone of your current posts, that you wouldn't be best pleased at all .... as you would no doubt feel that such customers were receiving preferential treatment to you, and then there would certainly be a bit of foot stamping.

The posts you are reading, both mine and others, are not to berate you or anything of this nature, but to try and help you see the underlying basis and principles of why Nwide, although kindly allowing you to do so, also wish to load your payrate to take it akin to semi-commerical rates, IF you rent your house out to a 3rd party.

There really is no argument, arm twisting, or anything that you can do that will make them reverse their decision, as this stance applies to all mortgagors whom request such permissions - as I said way back, if you are not happy with the rate etc, and seeing as you have bags of equity, why not spend an hour or so with a whole of market broker to see what other BTL options are out there for you.

I'm also sure that you've explored your responsibilities and the associated costings of being a landlord, your permitted deductions, and reporting requirements ..... and I wish you well in your new venture !

Hope this helps

Holly xx

dunstonh

There really is no argument, arm twisting, or anything that you can do that will make them reverse their decision, as this stance applies to all mortgagors whom request such permissions

Indeed. Although some lenders will point blank refuse to allow it or put a time restriction on it.

holly_hobby

Exactly Duns, as I say the fact Nwide have agreed CTL is a plus, with CTL typically always timebound, usually for a period of around 3 yrs (although some lenders actually have an annual review).

As you know, but for the OPs benefit, this is because CTL is actually a non-contractual tacit arrangement with the lender, and designed to temporarily assist accidential landlords - the view being after 3 yrs or so of continued letting (ie they haven't sold the property), the mortgagor has taken the role of a landlord on a longterm and permament basis, and hence the move at that time onto a designated BTL product.

Holly xx

jamesml

If you are so determined to keep your good rate, stay in the house and find a different BTL property with a pure BTL mortgage.

Would be interesting to see how the sums worked out on that.

dimbo61

ViolaLass you can offset the Interest you pay on a BTL mortgage against the profit you make from renting.
My residential mortgage is at a higher Interest rate than my BTL Interest rate.
If you are not happy with your current Lender go and see a whole of market mortgage broker and change lenders.

kingstreet

dimbo61 wrote: »

ViolaLass you can offset the Interest you pay on a BTL mortgage against the profit you make from renting.
My residential mortgage is at a higher Interest rate than my BTL Interest rate.
If you are not happy with your current Lender go and see a whole of market mortgage broker and change lenders.

I started to write a response to that post, thinking it was a sarcy answer. However, with no tonal inflection from the pixels on a screen I decided it was probably genuine, that it was reinforcing your suggestion can be a good idea.

The tax relief and lower amount and LTV on the residential make borrowing more on the let a sensible option, as you suggested.

ViolaLass

dimbo61 wrote: »

ViolaLass you can offset the Interest you pay on a BTL mortgage against the profit you make from renting.
My residential mortgage is at a higher Interest rate than my BTL Interest rate.
If you are not happy with your current Lender go and see a whole of market mortgage broker and change lenders.

Fair enough, but not usually the case, I believe. Certainly wouldn't have been for me. I'm aware that you can offset the interest paid against tax but that doesn't make it good to borrow on the BTL per se. You can offset the interest either way, provided you can show that BTL is the reason why you borrowed (we'll be offsetting the interest from our residential mortgage, taken out purely and solely in order to BTL).

My comment was based on the idea that the BTL mortgage would have a higher interest rate. Obviously if it's the other way round then that's another matter.

magpiecottage

The bottom line seems to be that Portman offered the OP a residential mortgage. Nationwide has continued to offer that - albeit at a loss (Bank of Ireland take note!!!).

The OP no longer wants a residential mortgage, she wants a commercial mortgage.

Nationwide has said okay - here are the terms we will offer you.

That is exactly the same as any business will do. As others have said (in as many words), the OP can accept that offer or not.

However, the terms Nationwide chooses to offer are its own commercial decision. This is also a matter that would fall outside FOS jurisdiction both for that reason and because a buy to let mortgage is not regulated.