Nationwide accuses us of Letting our Property

Enfieldowl

Hi, Snowy_one's wife here. rainbowgirl84 here are the original letters which I've had to copy and paste as a first time poster I'm not allowed to post with Image links.

It looks like you're letting your property
Dear Mr XX & Mrs XX
We've recently reviewed your mortgage account, and it looks like you're no longer living in your home yourself and could be renting it out to someone else. Your current residential mortgage Terms and Conditions say you need our permission to rent (let) your property and that we may charge you more if you do so.
What happens next if you're letting
If you're renting out your property, you don't need to do anything - we'll add an extra 1% to your current mortgage interest rate for all mortgage accounts you have for this property, starting from 1 December 2019. By doing this, it will update your existing agreement, bringing it in line with Buy to Let interest rates and to reflect the increased risk we have in lending on a rental property. We'll get in touch again nearer the time, letting you know how this will affect your monthly payments.
There are some situations when we won't apply the additional 1% interest rate, for example, if you're in the Armed Forces or Foreign Commonwealth Office and living elsewhere or are dealing with a critical illness (more exceptions are listed in the FAQ section). If this applies to you, or there are any other exceptional circumstances you'd like us to consider, just give us a call and we'll be happy to look into this.
Things you won't be able to do while you're letting
It's important for you to know that while you're letting, you won't be able to do certain things with your mortgage account, such as:
• Switch to a new mortgage rate.
• Ask to borrow more.
• Add or remove a borrower.
• Amend your mortgage term.
• Change your repayment method.
Of course, if you stop letting, just get in touch with us to let us know, and you could be able to do all those things again. You can find out more at nationwide. co .uk /letting
If you're not letting ...
If we've got it wrong, we're really sorry for the inconvenience, but please write to us with proof that you're still living at
XXX by 17 October 2019.
The types of proof we accept are an original copy or photocopy of:
• Your most recent Council Tax bill, or
• A utility bill dated within the last three months.
We've also included a separate form you'll need to complete, along with a prepaid envelope for you to use.
Other options you might like to think about
If you plan to let your property over the long term, a Buy to Let mortgage (BTL) might suit you better and potentially save you money. If you'd like to find out more, we have a specialist Buy to Let team who can provide you with information about products offered by our specialist BTL provider, The Mortgage Works (TMW). TMW is a specialist mortgage lender of Nationwide Building Society. Just give us a call on 0800 545 3021, quoting reference MBFHL. You'll find a list of local Independent Financial Advisors, along with more info, at unbiased.co.uk
We're here to help
We realise that, over time, your needs may change - but no matter where life takes you, we're always on hand to help. So if you have any questions, please visit nationwide. co. uk/letting, give us a call on 0800 030 4094, or visit us in your local branch.
Thank you for being a member.
Your Nationwide Mortgage Operations Team.
Frequently Asked Questions (FAQs)
Why do you think my property is being let?
We have reason to think you're letting as we believe someone else is living in the property.
Is Nationwide allowed to charge me more?
Once you start to let your property without our permission you're no longer following your residential mortgage Terms and Conditions. We will amend our current agreement with you, which provides you with permission to let but includes new conditions such as an additional interest rate and not being able to switch.
What are the exceptional circumstances that mean the additional interest rate won't be applied?
We won't apply the additional interest rate in the following circumstances; Armed Forces or Foreign Commonwealth Office and living elsewhere, critical illness, letting to a family member and no profit is being made, letting the property as a holiday home for under 18 weeks per year and renting part of the property e.g. a single room.
If you are part of the Armed Forces and living elsewhere, please send either a copy of your ID card or payslip with the enclosed form using the prepaid envelope. If you are part of the Foreign Commonwealth Office, please send a letter from your HR department. If you feel you meet any of the other exceptional circumstances listed above, please get in touch by giving us a call.
I'm not letting, why do I need to prove this?
We require proof that you're still living in your property so that we can update our records. Without this, we can't be certain the property is not being let and therefore can't ensure that you're following your residential mortgage Terms and Conditions.
What do I need to know about being a landlord?
There is important information that you should be aware of when you're letting your property. You can find helpful support, including the Government's How to Let and How to Rent guides, by visiting nationwide. co .uk/letting.
Can I have a Buy to Let mortgage instead?
By giving our specialist Buy to Let team a call on 0800 545 3021 we can talk you through the considerations for this, or you can visit unbiased .co. Uk, please note that if you do switch to a Buy to Let mortgage, any applicable early repayment charges for your residential mortgage will apply.
I'm struggling to meet my monthly mortgage payments, what can I do?
If there's ever a moment when it feels hard to meet your monthly mortgage payments, instead of worrying, please give us a call on 0800 464 3030 as soon as possible. We're here between 9am and 5pm, Monday to Friday, and have years of experience in helping people manage their mortgages.



The response to our complaint:



Our response to your complaint
Dear Mr & Mrs XX
Thank you for taking the time to raise your concerns. I'm sorry you feel you needed to do this.
Your concerns
You're unhappy with the letter you have received about letting your property.
Our findings
We're sorry if the wording in the letter has offended you, this was not our intention.
A recent audit has taken place using a third-party company. I cannot provide any further details. We have reason to think you're letting your property. As we haven't given consent to let, we needed to write to you, to understand how the property is being used.
It's important we do this as we have a responsibility to ensure our members are following their residential Terms & Conditions to ensure our policies remain fair to all our members.
If you aren't letting the property, all you need to do is send us your most recent Council Tax Bill or a utility bill received in the last 3 months.
If proof isn't received, 1% will be added to the interest rate on your mortgage account from 1st December 2019. When you took the mortgage with us it was within the agreement you would be living in the property.

Our decision
I can't agree we have made any errors. I understand this may not be the outcome you were hoping for and I hope my findings have explained my decision.
Your information
The information you've provided will be held by Nationwide. We'll use it to process your complaint and resolve your concerns. For more information please see "How Nationwide uses your information" online at nationwide. co. uk/privacy or in branch.
Next steps
This is our final decision and I feel I've provided a fair and reasonable outcome. However, if you remain unhappy, the next steps you can take are outlined under "Your Rights" on this letter.
Yours sincerely
Member Relations Consultant Member Service
Your rights
We believe we've delivered a fair outcome to your complaint, so please let us know if there's anything we've missed. Alternatively, you have the right to refer your complaint to the Financial Ombudsman Service, free of charge - but you must do so within six months of the date of this letter. I've enclosed a copy of their leaflet, or you can visit their website -
www. financial!ombudsman. orq.uk
If you do not refer your complaint in time, the Ombudsman will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if the Ombudsman believes that the delay was as a result of exceptional circumstances.

Sea_Shell

Sorry, but surely you just needed to provide them with the proof they requested, of your residency, job done.

Have you supplied them with this?

Yes, it's a badly worded letter, made to come across as "guilty" until proved innocent.

davidmcn

Sea_Shell wrote: »

Yes, it's a badly worded letter, made to come across as "guilty" until proved innocent.

I don't think it's all that accusatory: "If we've got it wrong, we're really sorry for the inconvenience..." etc.

It looks pretty reasonable to me.

SpiderLegs

They have had a third party put a large amount of anonymised data through an algorithm to try catch out fraudulent activity.

Such an algorithm will not be perfect initially. It will improve the more data is put through it. Your and probably a small number of other mortgages will be incorrectly flagged up. The next time they do the exercise it will become more accurate.

Instead of kicking off you should be glad that nationwide are doing things like this as it helps to reduce their costs and risk profile. Perhaps consider that by just complying with their request and forgetting it you are actually helping to prevent fraud and by complaining about it instead you are wasting everybody’s time.

getmore4less

The first letter should start with the section
"If we've got it wrong..."
(list of acceptable proof)

Then go onto
"What happens next if you are letting".

Send the last council tax bill job done.

If they subsequently mess up then you have a decent complaint.