Letting Fee conundrum
Discussion
Basic facts...
I've got a sizeable mortgage with Abbey, interest only and I am in the process of moving in with my girlfriend. Given the current state of the prperty market, selling the house is, ermmm, difficult so I'm going to let it out. Now, normally as I understand it you used to be able to advise your mortgage co and they would generally have agreed to it.
So, wanting to stay on the right side of the contract, I phoned and told them what I wanted to do at which point they said that they would be looking at a "buy to let" mortgage whereupon I jumped in and told them that there was no way I'd get one as I'd fail on LTV, fail on rent v mortgage payments. They said no worries, sure its just a formality and we'll let you know.
Got a letter from them yesterday stating that it was OK to let the property, on the current agreement, but I have 30 days to come up with £2500..... and if I let the property without making this payment, then the mortgage interest rate will be "adjusted".
I was ever so slightly staggered... I'm not making a profit out of this (even at 3% interest), I'm having to subsidise the mortgage payments anyway and they still want £2500.
Is this reasonable, given the current state of the market etc...
I've got a sizeable mortgage with Abbey, interest only and I am in the process of moving in with my girlfriend. Given the current state of the prperty market, selling the house is, ermmm, difficult so I'm going to let it out. Now, normally as I understand it you used to be able to advise your mortgage co and they would generally have agreed to it.
So, wanting to stay on the right side of the contract, I phoned and told them what I wanted to do at which point they said that they would be looking at a "buy to let" mortgage whereupon I jumped in and told them that there was no way I'd get one as I'd fail on LTV, fail on rent v mortgage payments. They said no worries, sure its just a formality and we'll let you know.
Got a letter from them yesterday stating that it was OK to let the property, on the current agreement, but I have 30 days to come up with £2500..... and if I let the property without making this payment, then the mortgage interest rate will be "adjusted".
I was ever so slightly staggered... I'm not making a profit out of this (even at 3% interest), I'm having to subsidise the mortgage payments anyway and they still want £2500.
Is this reasonable, given the current state of the market etc...
mondeoman said:
Basic facts...
I've got a sizeable mortgage with Abbey, interest only and I am in the process of moving in with my girlfriend. Given the current state of the prperty market, selling the house is, ermmm, difficult so I'm going to let it out. Now, normally as I understand it you used to be able to advise your mortgage co and they would generally have agreed to it.
So, wanting to stay on the right side of the contract, I phoned and told them what I wanted to do at which point they said that they would be looking at a "buy to let" mortgage whereupon I jumped in and told them that there was no way I'd get one as I'd fail on LTV, fail on rent v mortgage payments. They said no worries, sure its just a formality and we'll let you know.
Got a letter from them yesterday stating that it was OK to let the property, on the current agreement, but I have 30 days to come up with £2500..... and if I let the property without making this payment, then the mortgage interest rate will be "adjusted".
I was ever so slightly staggered... I'm not making a profit out of this (even at 3% interest), I'm having to subsidise the mortgage payments anyway and they still want £2500.
Is this reasonable, given the current state of the market etc...
when you say "not making a profit" is that even when calculated on interest only? I've got a sizeable mortgage with Abbey, interest only and I am in the process of moving in with my girlfriend. Given the current state of the prperty market, selling the house is, ermmm, difficult so I'm going to let it out. Now, normally as I understand it you used to be able to advise your mortgage co and they would generally have agreed to it.
So, wanting to stay on the right side of the contract, I phoned and told them what I wanted to do at which point they said that they would be looking at a "buy to let" mortgage whereupon I jumped in and told them that there was no way I'd get one as I'd fail on LTV, fail on rent v mortgage payments. They said no worries, sure its just a formality and we'll let you know.
Got a letter from them yesterday stating that it was OK to let the property, on the current agreement, but I have 30 days to come up with £2500..... and if I let the property without making this payment, then the mortgage interest rate will be "adjusted".
I was ever so slightly staggered... I'm not making a profit out of this (even at 3% interest), I'm having to subsidise the mortgage payments anyway and they still want £2500.
Is this reasonable, given the current state of the market etc...
I would love to give you my private professional opinion on what to do, and how to do it but I do not want anything to some back and bite my arse from a public forum
(feel free to pm)
minimax said:
mondeoman said:
Basic facts...
I've got a sizeable mortgage with Abbey, interest only and I am in the process of moving in with my girlfriend. Given the current state of the prperty market, selling the house is, ermmm, difficult so I'm going to let it out. Now, normally as I understand it you used to be able to advise your mortgage co and they would generally have agreed to it.
So, wanting to stay on the right side of the contract, I phoned and told them what I wanted to do at which point they said that they would be looking at a "buy to let" mortgage whereupon I jumped in and told them that there was no way I'd get one as I'd fail on LTV, fail on rent v mortgage payments. They said no worries, sure its just a formality and we'll let you know.
Got a letter from them yesterday stating that it was OK to let the property, on the current agreement, but I have 30 days to come up with £2500..... and if I let the property without making this payment, then the mortgage interest rate will be "adjusted".
I was ever so slightly staggered... I'm not making a profit out of this (even at 3% interest), I'm having to subsidise the mortgage payments anyway and they still want £2500.
Is this reasonable, given the current state of the market etc...
when you say "not making a profit" is that even when calculated on interest only? I've got a sizeable mortgage with Abbey, interest only and I am in the process of moving in with my girlfriend. Given the current state of the prperty market, selling the house is, ermmm, difficult so I'm going to let it out. Now, normally as I understand it you used to be able to advise your mortgage co and they would generally have agreed to it.
So, wanting to stay on the right side of the contract, I phoned and told them what I wanted to do at which point they said that they would be looking at a "buy to let" mortgage whereupon I jumped in and told them that there was no way I'd get one as I'd fail on LTV, fail on rent v mortgage payments. They said no worries, sure its just a formality and we'll let you know.
Got a letter from them yesterday stating that it was OK to let the property, on the current agreement, but I have 30 days to come up with £2500..... and if I let the property without making this payment, then the mortgage interest rate will be "adjusted".
I was ever so slightly staggered... I'm not making a profit out of this (even at 3% interest), I'm having to subsidise the mortgage payments anyway and they still want £2500.
Is this reasonable, given the current state of the market etc...
I would love to give you my private professional opinion on what to do, and how to do it but I do not want anything to some back and bite my arse from a public forum
(feel free to pm)
I'll drop you a PM tomorrow.
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