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Product renewal problem
Options
anooppunshi
Posts: 5 Forumite
Hi everyone
I need some urgent help in relation to my mortgage with nationwide. About one and half year ago I took consent to let from nationwide and let my property because I went to work abroad. My current fixed rate deal is about to end so I called them and asked for renewal /new deal. To my shock they have told me that they will not offer any new product unless I stop letting my property. If I continue to let the property I shall be automatically switched to their standard variable rate SVR (4%) plus 1% penalty for continuing to let.
As I have been working abroad, I cannot get any other mortgage with any other lender. Not even a but to let mortgage. Whereas continuing with nationwide on SVR is also not viable because monthly installment at 5% interest would be significantly higher than rental income. When I took the decision to let I did some research and was under the impression that a lot of people go through similar situations and their mortgage is renewed to new products seamlessly while continuing to let their property but Nationwide mortgage advisor was crystal clear that they don't have any other option for me.
I don't want to sell the property right now. Can someone please help me and guide me about my options.
Thanks a lot
I need some urgent help in relation to my mortgage with nationwide. About one and half year ago I took consent to let from nationwide and let my property because I went to work abroad. My current fixed rate deal is about to end so I called them and asked for renewal /new deal. To my shock they have told me that they will not offer any new product unless I stop letting my property. If I continue to let the property I shall be automatically switched to their standard variable rate SVR (4%) plus 1% penalty for continuing to let.
As I have been working abroad, I cannot get any other mortgage with any other lender. Not even a but to let mortgage. Whereas continuing with nationwide on SVR is also not viable because monthly installment at 5% interest would be significantly higher than rental income. When I took the decision to let I did some research and was under the impression that a lot of people go through similar situations and their mortgage is renewed to new products seamlessly while continuing to let their property but Nationwide mortgage advisor was crystal clear that they don't have any other option for me.
I don't want to sell the property right now. Can someone please help me and guide me about my options.
Thanks a lot
0
Comments
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There are very few lenders who allow those with consent to let to have new residential products when doing so.
They would really like you to remortgage elsewhere onto a formal BTL so they have only owner-occupiers on their residential mortgage book.
You have been working abroad? But not any longer? You should have BTL options then...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 -
But I don't have any UK income to support any new application to any new lender in the UK? Is that not required?0
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Sell the property would be an option, Consent to let is always at the discretion of the lender as you took it out as a residential in the first place."It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
anooppunshi wrote: »But I don't have any UK income to support any new application to any new lender in the UK?
Then the 1% loading reflects the lenders increased risk of potential default. Selling the property if you are no longer intending to reside in it may well be worth considering. As currently your options are limited.0 -
What about expat mortgages?0
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That's actually pretty unusual. Normally if you get to the end of a residential mortgage term they'd want you to shift to a BTL mortgage if you want to continue to let it outanooppunshi wrote: »When I took the decision to let I did some research and was under the impression that a lot of people go through similar situations and their mortgage is renewed to new products seamlessly while continuing to let their propertypoppy100 -
As far as I'm aware NW's policy has been clear on this for a little while. Certainly longer than 18 months.0
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except that Nationwide doesn't offer BTL mortgages. They do through their separate arm but that's only available to UK residents.0
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