NRAM and letting consent advice please

Carron83

I'm new to this forum so apologies if someone else has posted something similar. I bought my property in 2007 and got a 100% interest only mortgage, part mortgage and part loan.

Since 2007 i have bought my family home and got NRAM's permission to let my other property out. This permission cost me £250 and was for 12 months which expires on the 20th Dec 2014.


Today i received a letter saying i need to show proof that i've moved back into the property from the 20th Dec.
I've been told by NRAM that i need to speak to an advisor on the phone to get a new 12 month permission to let from them. If accepted it will cost me £375 for the 12 months.

I have tenants in the property and cannot move back in. At the same time, i am now part time, just come of maternity leave and am not likely to get a buy to let mortgage due to lack of equity and no savings now having had a baby.

I am so angry that NRAM constantly charge their customers ridiculous amounts of money for simple admin tasks and are making me jump through hoops which may mean i have to sell the house at a loss. Is there any ombudsman i can go to about their practices? Or does anyone have any ideas about what i should do?

kingstreet

Some lenders add 1.5% per annum to their rates, or insist on a product change to a fix for three years at 5.5%.

A fee of £375 a year isn't excessive for agreement to vary the terms of your contract.

Unfortunately, NRAM is effectively a Government department tasked with recovering money owed to the taxpayer and it is neither flexible, nor open to business/competition pressure.

anselld

CTL is only supposed to be a temporary solution. If you were on any BTL product you would find the additional costs exceed the £250 or £375 which NRAM wish to charge for you breaking the terms of your residential mortgage.

Thrugelmir

Carron83 wrote: »

I am so angry that NRAM constantly charge their customers ridiculous amounts of money for simple admin tasks and are making me jump through hoops which may mean i have to sell the house at a loss. Is there any ombudsman i can go to about their practices? Or does anyone have any ideas about what i should do?

Consent to Let is not a right. As has been said previously it's only deemed be to a short term measure. You knew that the expiry date of the consent 12 months ago. So shouldn't be a great surprise.

Your problems are self inflicted. Buying another property before dealing with the one you already owned etc. The lack of equity existed a long time ago as well.

No ombudsman is going to interfere in a commercial decision. The problem is for you to tackle.

kingstreet

The search facility on here is pretty good;-

http://forums.moneysavingexpert.com/search.php?searchid=158134747

wolfplayer

Carron83 wrote: »

I'm new to this forum so apologies if someone else has posted something similar. I bought my property in 2007 and got a 100% interest only mortgage, part mortgage and part loan.

Since 2007 i have bought my family home and got NRAM's permission to let my other property out. This permission cost me £250 and was for 12 months which expires on the 20th Dec 2014.

So you have two properties?

MikeMouse

They charged me similar amounts and I agree with you. NRAM are just a horrible to deal with and I rue the day I ever signed an agreement with them.


Good Luck!

amnblog

Carron and MikeMouse need to accept that the original agreement with NRAM was not an arrangement for a property you would let out.


If it was - they would have charged you more at outset and probably lent you less.


£375 is a marginal cost in the commercial process of being a landlord.


Hopefully you have both:


Arranged a gas certificate
Had an electrical safety check carried out
Had a suitable water check system check carried out
Provided an EPC certificate
Used a suitable deposit scheme
Arranged Landlords insurance

stephenni1971

YOU decided to take out a 100% mortgage
YOU took out an interest only mortgage
YOU chose to buy ANOTHER property
YOU want rent out a property you bought on a residential mortgage

The situation you are in is entirely of your own making. Its ridiculous to say at this stage NRAM are being unfair... you moved the goalposts not them.