Consent to let - NatWest

pivotalpete

Jma, thanks for your assistance

The docs I was sent were April 18 & May 18

Whilst my mortgage date starts Jan, it was signed in November, with a rate from August & a repayment due to Natwest delaying initiating the process in a timely manner when requested.

What I received:
Consent to let fee If you want to let your property but don’t have a buy-to-let mortgage, you’ll pay this for each
‘consent to let’ agreement, where we agree to you letting out your property for a set period
within your existing owner-occupier mortgage.
£100

The current terms:
Consent to let fee
If you want to let your property but don’t have a buy-to-let mortgage, you’ll pay this for each ‘consent to let’ agreement, where we agree to you letting out your property for a set period within your existing owner-occupier mortgage.
£120 for the granting of consent and then an annual fee of £120

pivotalpete

On the signed document.


Costs to be paid on a one off basis
Fees payable to National Westminster Bank Plc on a one off basis
Fee Amount
None

Other Fees to be paid on a one off basis
None

Costs to be paid regularly and not included in the instalments
None

Costs to be paid regularly and included in the instalments
None

Brock_and_Roll

I am amazed (from a banking regulation perspective) that NatWest allowed a residential mortgage to be on consent to let for such a long time for no obvious reason.

If this is relatively common then they are potential providing wrong figures in their capital calculations - a bit of a Metro Bank situation.

Thrugelmir

Brock_and_Roll wrote: »

I am amazed (from a banking regulation perspective) that NatWest allowed a residential mortgage to be on consent to let for such a long time for no obvious reason.

Imposing an annual fee is a way to start addressing the situation though. Was always the policy in the distant past. Likewise a limitation on the number of years that CTL would be granted for. Expect more lenders to impose an interest penalty where CTL defaults onto a BTL basis.

With the squeeze on retail banking profits , low interest rates, attack on overdraft fees etc. Lenders will be looking into all avenues to address the shortfall.

Thrugelmir

pivotalpete wrote: »

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.

Not without consent. Your mortgage contract that you signed will be explicit. CTL would have been granted and will be renewed, on the terms and conditions set by the lender. Unfortunately if you don't like what's on offer then there's no alternative. After that the choice is yours to make.

pivotalpete

Thrugelmir

I have no problem honoring what Ive agreed, this wasnt in what I agreed.

Its the imposing of a fee after agreeing terms where this was as per each previous mortgage renewal, an initial fee in 2008, no minimum/maximum term of consent & no provision (within the relevant section) to add renewal fees. Clearly on the later Dec 18 terms (after I signed) that has been altered to include renewal fees..

The fact that I have been lucky that it wasnt there before or been applied to each renewal to me is not relevant or what bothers me, its the imposition of a new fee, it could have been for administration of checking I have insurance or imposing insurance, its the principle & might not be limited to ctl.

I dont really have a choice as the redemption penalty would be 5%

kingstreet

Consent to let is a variation in the standard mortgage terms (not product specific) is at the lender's discretion and it is renewable.

Therefore at any time the lender can amend these terms, so the longest you might go without the possibility of change is a year or less.

This is one of those "I've had a good run, but now I might have to pay more" moments. IMHO the alternative is normally worse.

Thrugelmir

pivotalpete wrote: »

Its the imposing of a fee after agreeing terms where this was as per each previous mortgage renewal, an initial fee in 2008, no minimum/maximum term of consent & no provision (within the relevant section) to add renewal fees. Clearly on the later Dec 18 terms (after I signed) that has been altered to include renewal fees..

Yes. Every year NW will issue a revised table of charges (for ad hoc services), normally with the annual mortgage statement. Again your mortgage contract will provide the lender with the flexibility to do so. The lenders costs don't remain fixed. Staff costs, premises, overheads, compliance costs etc will increase every year.

k3rstin

I'm with you @pivotalpete, perhaps because I have just received a similar letter - and I don't like surprises if they cost me money!

I bought a property a few years ago with a relatively small mortgage (LTV is now around 35%). I found out last year that my job would be transferred to Amsterdam so contacted NatWest to get consent to let. I understood from them that the £120 fee was a one off.

My 2 year fixed term period ended in April - so I'm now on whatever their floating rate is. I've had so much on trying to settle in the Netherlands, find somewhere to live, get a bank account, register as a resident, change car to NL plates, get all the insurances in order... oh, and work it's endless! so the last thing on my mind was remortgaging.

I'm renting it to friends at below market rate. It certainly isn't a commercial arrangement so I'm not trying to have my cake and eat it... i would much rather be living in my own home, in my home country...

Is it worth changing mortgage? I'm now paid in Euros (which is thankfully strong atm) so would UK lenders accept "overseas" earnings? or consider it a purely commercial venture? because i want to keep my own home, to return to one day!
#involuntarynomad

TMB_1972

Have just come across this. Im in the same situation.

Surprised to read about "having cake, eating it",and some of the other obscure comments.

Its simply a question of legally, can Natwest do this, or not.

I had a long call with them, and asked them to specifically confirm which element of the legal documentation between the two parties allowed them to do this. They went all over the place, but could not (on the call, at least) tell me what allowed them to do this.

So I asked them to note that I declined the £120 charge, until they could tell what Ts and Cs allowed them to unilaterally charge whatever they wanted to me.

They will of course charge this to me. And I will, of course complain to the Banking Onbudsman, unless they can tell me specifically what allows them to unilaterally apply new charges to this account.