nram - no consent to let

pineapple11

Hello

looking for some advice
We 've had an nram together mortgage since 2008 - In 2014 we quickly outgrew it. We were in negative equity so knew we wouldnt be able to let the property or gain consent. Rightly or wrongly we let the property out and bought another property - we overpaid the property when possible and worked on a plan to get it on a btl. We have now enough money to move lenders and to a btl mortgage and we are just in the process of changing over. It is all in hand but nram have tried to call me. I am in a bit of a panic. Any ideas why they would contact me?

AdrianC

The absolute worst that'll happen is that they'll call the mortgage in - they'll ask you to repay it in the near future... Which is what you're trying to do anyway.

pineapple11

Thank you adrian, Do you think it's likely they are calling for that reason? I can't think why else they would need to speak to me. They just posted out a redemption statement (which was requested by the new lender but the date to switch isnt until near the end of next month). It could be something completely different but just preparing myself.

ACG

If they call in the loan, they will give you time to sort out an alternative.
I they asked for the money back and you could not pay it back, by the time it goes to court you will have switched lenders anyway.

They may bang a few fees on for letters, but that would be pretty spiteful of them under the circumstances and definitely worthy of a complaint to the ombudsman.

pineapple11

Thank you acg - This makes me feel better. I just had visions of nram telling our new lender and them refusing to loan us the btl mortgage - thanks for taking the time to reply

pineapple11

Could they add fees for consent to let and backdate it before I change lenders? I'm sure I read they wanted charge people £1250 a year.

steampowered

The terms of my mortgage with Yorkshire Building Society say that with consent to let the rate goes up by 1%; but that if you let out the property without telling them you have to pay an extra 2% for the period you let without consent.

In theory that could happen but very unlikely in reality. They probably just want to check your identity

theartfullodger

You have a contract with NRAM: You decided to ignore the terms of the contract & break it, renting the place out.

How would you feel if the people you rented the place out to decided to ignore the terms of the contract & break it - e.g. stopped paying the rent or subletting through AirBnB making a profit?

Merely asking a question.

pineapple11

No it's not good to not adhere to the contract rules. I hear you with that however we were presented with the fact that even if nram had 'granted' consent to let they made it clear it would only be on a year by year basis. Unfortunately not an ideal situation - we would still be living there now all 4 of us in 1 room. I'm not going to try and convince anyone of our reasons for doing what we did - we made our choice and made the best decision we could at the time but all I can say is we've spent the last 5 years trying to resolve things. Not looking for sympathy - just a bit of advice on what to expect next.