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NRAM Consent to Let headache
marcmorley78
Posts: 2 Newbie
Hi all,
I'm currently living in South Africa with my in-laws and am letting out my house in the UK. I originally applied and was granted a consent to let by NRAM at a cost of £100. At the time I was not offered an indefinite CTL, only annual. It is now time to renew, and they want to charge me £750! My circumstances have not changed, it's just their tariff of charges. They're happy to add this to my mortgage (of course they are!) but I don't see how this is fair. And what is to stop them increasing their fees another 700% next year?? I'm not sure what to do. I would love to leave NRAM, but it seems no other banks will offer me a mortgage because I don't have a salary in the UK (my only income is from the rental).
Can anyone offer some advice?
Many many thanks in advance!!
Marc
I'm currently living in South Africa with my in-laws and am letting out my house in the UK. I originally applied and was granted a consent to let by NRAM at a cost of £100. At the time I was not offered an indefinite CTL, only annual. It is now time to renew, and they want to charge me £750! My circumstances have not changed, it's just their tariff of charges. They're happy to add this to my mortgage (of course they are!) but I don't see how this is fair. And what is to stop them increasing their fees another 700% next year?? I'm not sure what to do. I would love to leave NRAM, but it seems no other banks will offer me a mortgage because I don't have a salary in the UK (my only income is from the rental).
Can anyone offer some advice?
Many many thanks in advance!!
Marc
0
Comments
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Many lenders charge a fee, increase the interest rate, or both.
For example, you would have a £999 fee and three year fix at 5.5% if you requested CTL with Halifax.
As this is an expense of running your letting business, the cost is an allowable expense for tax purposes.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Hi Kingstreet, thanks for the quick response!
It sounds like my deal is not so bad then, although it still stings. I just hope they don't hike their fees again next year. The rent only just covers the mortgage, so no profits to write these fees off against. But I guess I should just be happy I'm not with Halifax (I assume that's an annual fee and not a one-off?).
Thanks again!0 -
CTL is only deemed to be a temporary arrangement not permanent. The lender can impose whatever fees they think fit for the circumstances as totally at their discretion.
Depending upon your personal circumstances you need to make longer terms for the property.0
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