Consent to let - NatWest

pivotalpete

Accidental landlord.

I've just received a letter telling me that NatWest are introducing a £120 fee to cover their risk from granting a consent to let some ten years ago. Never missed a payment & mortgage is 10% of property value.

Ten years ago I paid a one off fee of £100 & nothing since & I've seen letters from last year that the same terms still applied.

The level of cost is low, but worry that they could increase the fee at any time or introduce any fee they choose, without consent.

This change comes less than a year since I entered into a new 5 year deal & to switch would cost a considerable amount in both redemption & new mortgage fees.

What are people's thoughts on the legitimacy of this change

[Deleted User]

I think it is completely fair.



They gave you a residential mortgage that you are not using for the intended purposes


Your property has been rented for 10 years? Why did you enter in to a new 5 year residential mortgage last year? Surely you ha e had more than one chance to move to a legit btl mortgage?



Natwest are being generous allowing you to rent the property on a residential mortgage. They could take the approach of other high Street lenders and flat out refuse you permission and force you to pay the erc or leave the property empty.



The £120 charge is a lot less than the extra interest if you had moved to a btl mortgage. Sounds like you have got a good deal


This isn't a recent change either, this is in their terms and conditions and has been for years. I assume you read that before entering in to a 5 year financial contract?





Sorry if this comes across rude but you are trying to have your cake and eat it. £120 to change to a content to let no questions asked is stupidly generous of natwest.

foxy-stoat

pivotalpete wrote: »

I've just received a letter telling me that NatWest are introducing a £120 fee to cover their risk from granting a consent to let some ten years ago. Never missed a payment & mortgage is 10% of property value.

You were lucky they granted it on that high LTV - has it been worth renting ?

pivotalpete

Ok, I'm not trying to have my cake and eat it and I acknowledgedbit was a low fee, my point is my worry they could arbitrarily change the fee to any level & my hands are tied.

I didn't buy to rent it out, I moved for work & couldn't sell at the time, the amount I have to shell out on rent where I am, means I make nothing (let alone factor in CGT). If I sell I can't buy anything where I'm renting. Our intent is to return to our home. Our LTV is just 10%, so what risk do they have? & Yes I did read the terms, £100 arrangement fee, no annual fee, advisor confirmed that was still the case, this is a new change.

BoGoF

Sounds like you are trying to have your cake and eat it tbh.

How much have you saved on interest by not being moved to a BTL product?

[Deleted User]

When did you complete on the new mortgage product?

pivotalpete

I completed in January

[Deleted User]

January 2019?


The current tarrif of mortgage fees and charges leaflet from natwest is dated December 2018 and states £120 for approval then £120 per year.



Every time you renew your mortgage you agree to the current terms and conditions that override the previous ones.



This fee structure was in place prior to your mortgage starting.



Should have read the ts and Cs unfortunately

pivotalpete

Bogof

Easy to say but no help relative to my question about the validity of new terms after completion

pivotalpete

Deleted_User

My 5yr deal runs from 1st January, but due to problems stems from a September renewal.

I cannot find in the digi docs this fee structure, does it make a difference that the documentation says variation?

[Deleted User]

Google it, natwest mortgage charges. The date is on the bottom of it


The charges will apply for as long as you hold that mortgage, and if you renewed you agree to the charges applicable at the tjme


So if you have a 5 year deal, you will pay £120 a year for consent to let


If it changes to £200 a year it will be for peoples who's mortgage started after the new charges were introduced



Every time you renew the mortgage you agree to the charges for that period of time