Building Society change goal posts for letting

sleepykits

Hi,
In Jul 2017 I checked on process, confirm rates etc for possible renting with my Building Soc as I was just changing my mortgage to a new 2 year discounted deal. I was informed, if I decide to rent in future I could stay on the new product rate of 1.6% for the 2 years but would then have to move to a buy to let. Six months later, I have decided to rent, have a tenant set up but now my building society is saying my product will be removed and go to the variable rate of 4.99%. I have also been told that despite my product will be removed, I am still bound by the early redemption penalties that product had. The original discussion for mortgage change was conducted over the phone and its my word against theirs as to what was agreed. The terms and conditions do not say about reverting to their base rate if renting and they cannot provide me with any evidence of where this decision has been based. This is a significant jump in mortgage payments and they appear to want it all ways with still including a redemption penalty. Does anyone know of anything I can do. Do they have the last say or can refuse me rental permission if I rock the boat. Im very upset.

ACG

It is you who wants to alter the terms of your Mortgage.

Your Mortgage terms will usually exclude the option of letting out the property. They do not have to agree to it and can change their stance on it whenever they choose.

However, there is something called TCF where lenders ave to treat everyone equally so it is unlikely they will just say it can not be done because you kick up a fuss. But what that does mean is if their decision is to charge a particular rate going forward it has to be for everyone and you are unlikely to get them to back down because it would mean changes across the board.

But you are looking at this from your perspective when saying they want it all, where as what they actually want is what you both signed up to at the outset. Not the answer you were after I imagine but hopefully puts a bit of meat on the bones.

All of that was the case when I worked for a lender (not a building society however).

Thrugelmir

sleepykits wrote: »

Do they have the last say or can refuse me rental permission if I rock the boat.

Read your mortgage contract there'll be a clear unambiguous clause that covers such eventualities. Consent to Let is entirely at the lenders discretion. On terms set by the lender. Internal policy can change at any time. Every application for CTL will be treated on it's own merits.

Doesn't matter what was said previously. As has no bearing on now.