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Nationwide Mortgages 1.24%

£1.24 @ Nationwide Building Society
I think people have already spoke about this. But I have been amazed by this building society. I switched my mortgage from Natwest (I was paying around £495 per month) to nationwide and my monthly pay… Read More
razk2k16 Avatar
4m, 4d agoFound 4 months, 4 days ago
I think people have already spoke about this. But I have been amazed by this building society. I switched my mortgage from Natwest (I was paying around £495 per month) to nationwide and my monthly payments have dropped to £345 and I'm paying 1.24%!! Which could knock 11 years off my mortgage.
If you haven't already check you're not paying more than you should!
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razk2k16 Avatar
4m, 4d agoFound 4 months, 4 days ago
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Top Comments

(2)
14 Likes
Be careful of using Nationwide if you ever want to consider letting out your property in the future.

There is a component called "Consent to Let" whereby you ask permission from your lender to rent out your property for a short time (say you move away, or life event, or simply move and want to keep the existing property). It is used regularly, especially if you dont yet have enough equity to move to a BTL mortgage.

Usual practise is the bank to either:
1. say yes in exchange for caveats (say, no DSS etc)
2. charge a nominal fee for admin (say £100) and issue you a cert. Some do it free.

Nationwide, on the other hand, throw a 1% penalty onto your mortgage rate for consent to let, and can cost thousands..... Beware.
5 Likes
sniperpenguin
Be careful of using Nationwide if you ever want to consider letting out your property in the future.
There is a component called "Consent to Let" whereby you ask permission from your lender to rent out your property for a short time (say you move away, or life event, or simply move and want to keep the existing property). It is used regularly, especially if you dont yet have enough equity to move to a BTL mortgage.
Usual practise is the bank to either:
1. say yes in exchange for caveats (say, no DSS etc)
2. charge a nominal fee for admin (say £100) and issue you a cert. Some do it free.
Nationwide, on the other hand, throw a 1% penalty onto your mortgage rate for consent to let, and can cost thousands..... Beware.

Just let it out anyway

1. Likelihood is they won't find out (I rented mine out and got a new house with another mortgage through Nationwide and at no point was it ever questioned)
2. If they did find out they wouldn't care. They may send you a letter as my mate did and he just politely asked them what they wanted him to do as he said he couldn't afford a BTL mortgage, nor the 1% price hike. They just said nothing

In respect of the other comment @M_z - you have no idea. Like myself there are a lot of people that suffered from the market crash in March 2007 (I bought my house in Feb 2007) and when trying to sell in April 2012 the market was totally dead but needed to move. After 10 months i rented it out. Put it up to let and it was let within 2hours of going on the market. I kept it for 2 years until the market picked up and sold in June 2015 and managed to break even on it.

So thats why.

All Comments

(57) Jump to unreadPost a comment
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1 Like #1
11 years oO
#2
I don't see any mortgages at 1.24%
1 Like #3
Deedie
I don't see any mortgages at 1.24%

There's plenty of fixed rates there at 1.19% and 1.24%.
4 Likes #4
i am more intrigued by the fact you are paying £345 :D for your mortgage , where do you live :D
1 Like #5
The lower % products have higher fees, usually £999
#6
Franken
Deedie
I don't see any mortgages at 1.24%
There's plenty of fixed rates there at 1.19% and 1.24%.

I see them now. had the no fee option ticked, so they didn't show up as there is £1000 fees for those mortgages
14 Likes #7
Be careful of using Nationwide if you ever want to consider letting out your property in the future.

There is a component called "Consent to Let" whereby you ask permission from your lender to rent out your property for a short time (say you move away, or life event, or simply move and want to keep the existing property). It is used regularly, especially if you dont yet have enough equity to move to a BTL mortgage.

Usual practise is the bank to either:
1. say yes in exchange for caveats (say, no DSS etc)
2. charge a nominal fee for admin (say £100) and issue you a cert. Some do it free.

Nationwide, on the other hand, throw a 1% penalty onto your mortgage rate for consent to let, and can cost thousands..... Beware.
1 Like #8
Deedie
I don't see any mortgages at 1.24%


It depends on how much you have left and how much your house is worth
1 Like #9
bbsutton
i am more intrigued by the fact you are paying £345 :D for your mortgage , where do you live :D


Haha I was paying around 500 for it. I like near Oldham! Houses are decent price. Live in a 3 bed semi
#10
I got my HSBC mortgage to provide me with a Consent to Let letter but they were helpful and friendly and did that with no additional penalty or fee.
2 Likes #11
razk2k16
bbsutton
i am more intrigued by the fact you are paying £345 :D for your mortgage , where do you live :D


Haha I was paying around 500 for it. I like near Oldham! Houses are decent price. Live in a 3 bed semi


I would of told this $&&& to $&$& off. Probably doesn't have a bit of equity to his name
3 Likes #12
sniperpenguin
Be careful of using Nationwide if you ever want to consider letting out your property in the future.
There is a component called "Consent to Let" whereby you ask permission from your lender to rent out your property for a short time (say you move away, or life event, or simply move and want to keep the existing property). It is used regularly, especially if you dont yet have enough equity to move to a BTL mortgage.
Usual practise is the bank to either:
1. say yes in exchange for caveats (say, no DSS etc)
2. charge a nominal fee for admin (say £100) and issue you a cert. Some do it free.
Nationwide, on the other hand, throw a 1% penalty onto your mortgage rate for consent to let, and can cost thousands..... Beware.

So their mortgages are to fund the purchase of a house you want to actually live in, otherwise you get a 1% penalty? Don't see a problem with that myself. If "you dont yet have enough equity to move to a BTL mortgage" you probably shouldn't be a landlord.
#13
mcguire85
razk2k16
bbsutton
i am more intrigued by the fact you are paying £345 :D for your mortgage , where do you live :D


Haha I was paying around 500 for it. I like near Oldham! Houses are decent price. Live in a 3 bed semi


I would of told this $&&& to $&$& off. Probably doesn't have a bit of equity to his name




Lol my house is worth 200k and I have 90k left on mortgage. So there is equity :p
5 Likes #14
sniperpenguin
Be careful of using Nationwide if you ever want to consider letting out your property in the future.
There is a component called "Consent to Let" whereby you ask permission from your lender to rent out your property for a short time (say you move away, or life event, or simply move and want to keep the existing property). It is used regularly, especially if you dont yet have enough equity to move to a BTL mortgage.
Usual practise is the bank to either:
1. say yes in exchange for caveats (say, no DSS etc)
2. charge a nominal fee for admin (say £100) and issue you a cert. Some do it free.
Nationwide, on the other hand, throw a 1% penalty onto your mortgage rate for consent to let, and can cost thousands..... Beware.

Just let it out anyway

1. Likelihood is they won't find out (I rented mine out and got a new house with another mortgage through Nationwide and at no point was it ever questioned)
2. If they did find out they wouldn't care. They may send you a letter as my mate did and he just politely asked them what they wanted him to do as he said he couldn't afford a BTL mortgage, nor the 1% price hike. They just said nothing

In respect of the other comment @M_z - you have no idea. Like myself there are a lot of people that suffered from the market crash in March 2007 (I bought my house in Feb 2007) and when trying to sell in April 2012 the market was totally dead but needed to move. After 10 months i rented it out. Put it up to let and it was let within 2hours of going on the market. I kept it for 2 years until the market picked up and sold in June 2015 and managed to break even on it.

So thats why.
#15
cliosport65
11 years oO

If they can knock 11 years off my mortgage that'd be awesome - I'd get all of the last 2 years' payments back!
#16
£999 fee oO
1 Like #17
M_z
sniperpenguin
Be careful of using Nationwide if you ever want to consider letting out your property in the future.
There is a component called "Consent to Let" whereby you ask permission from your lender to rent out your property for a short time (say you move away, or life event, or simply move and want to keep the existing property). It is used regularly, especially if you dont yet have enough equity to move to a BTL mortgage.
Usual practise is the bank to either:
1. say yes in exchange for caveats (say, no DSS etc)
2. charge a nominal fee for admin (say £100) and issue you a cert. Some do it free.
Nationwide, on the other hand, throw a 1% penalty onto your mortgage rate for consent to let, and can cost thousands..... Beware.
So their mortgages are to fund the purchase of a house you want to actually live in, otherwise you get a 1% penalty? Don't see a problem with that myself. If "you dont yet have enough equity to move to a BTL mortgage" you probably shouldn't be a landlord.

Look up the term "Accidental Landlord" - You may find it very enlightening ....
3 Likes #18
Deedie
I don't see any mortgages at 1.24%

Base rate plus 0.99% for the first 2 years only. Plus a £999 fee. Needs to be quite a big mortgage to justify that fee for such a short term.
3 Likes #19
jrw
sniperpenguin
Be careful of using Nationwide if you ever want to consider letting out your property in the future.
There is a component called "Consent to Let" whereby you ask permission from your lender to rent out your property for a short time (say you move away, or life event, or simply move and want to keep the existing property). It is used regularly, especially if you dont yet have enough equity to move to a BTL mortgage.
Usual practise is the bank to either:
1. say yes in exchange for caveats (say, no DSS etc)
2. charge a nominal fee for admin (say £100) and issue you a cert. Some do it free.
Nationwide, on the other hand, throw a 1% penalty onto your mortgage rate for consent to let, and can cost thousands..... Beware.
Just let it out anyway
1. Likelihood is they won't find out (I rented mine out and got a new house with another mortgage through Nationwide and at no point was it ever questioned)
2. If they did find out they wouldn't care. They may send you a letter as my mate did and he just politely asked them what they wanted him to do as he said he couldn't afford a BTL mortgage, nor the 1% price hike. They just said nothing

What great advice.

The worst case scenario isn't really going to hinder you is it? I mean, the worst case scenario is that a tenant burns the house to the ground and your insurance won't cover you due to the small print buried deep in a lot of landlord house insurance policies regarding the requirement that you MUST have a BTL mortgage or consent to let.
#20
razk2k16
mcguire85
razk2k16
bbsutton
i am more intrigued by the fact you are paying £345 :D for your mortgage , where do you live :D


Haha I was paying around 500 for it. I like near Oldham! Houses are decent price. Live in a 3 bed semi


I would of told this $&&& to $&$& off. Probably doesn't have a bit of equity to his name




Lol my house is worth 200k and I have 90k left on mortgage. So there is equity :p


It was aimed at the other comment. How can someone say... intrigued to how u are only paying 345 how the &&&&& is it their business what uv paid n owed etc.
#21
sniperpenguin
M_z
sniperpenguin
Be careful of using Nationwide if you ever want to consider letting out your property in the future.
There is a component called "Consent to Let" whereby you ask permission from your lender to rent out your property for a short time (say you move away, or life event, or simply move and want to keep the existing property). It is used regularly, especially if you dont yet have enough equity to move to a BTL mortgage.
Usual practise is the bank to either:
1. say yes in exchange for caveats (say, no DSS etc)
2. charge a nominal fee for admin (say £100) and issue you a cert. Some do it free.
Nationwide, on the other hand, throw a 1% penalty onto your mortgage rate for consent to let, and can cost thousands..... Beware.
So their mortgages are to fund the purchase of a house you want to actually live in, otherwise you get a 1% penalty? Don't see a problem with that myself. If "you dont yet have enough equity to move to a BTL mortgage" you probably shouldn't be a landlord.
Look up the term "Accidental Landlord" - You may find it very enlightening ....

I suppose I am thinking more of the tenants of a landlord, accidental or otherwise, who hasn't got the funds to cover emergency repairs etc etc, or worse still, cant afford the mortgage and the house gets repossessed.
2 Likes #22
jrw
sniperpenguin
Be careful of using Nationwide if you ever want to consider letting out your property in the future.
There is a component called "Consent to Let" whereby you ask permission from your lender to rent out your property for a short time (say you move away, or life event, or simply move and want to keep the existing property). It is used regularly, especially if you dont yet have enough equity to move to a BTL mortgage.
Usual practise is the bank to either:
1. say yes in exchange for caveats (say, no DSS etc)
2. charge a nominal fee for admin (say £100) and issue you a cert. Some do it free.
Nationwide, on the other hand, throw a 1% penalty onto your mortgage rate for consent to let, and can cost thousands..... Beware.
Just let it out anyway

1. Likelihood is they won't find out (I rented mine out and got a new house with another mortgage through Nationwide and at no point was it ever questioned)
2. If they did find out they wouldn't care. They may send you a letter as my mate did and he just politely asked them what they wanted him to do as he said he couldn't afford a BTL mortgage, nor the 1% price hike. They just said nothing

In respect of the other comment @M_z - you have no idea. Like myself there are a lot of people that suffered from the market crash in March 2007 (I bought my house in Feb 2007) and when trying to sell in April 2012 the market was totally dead but needed to move. After 10 months i rented it out. Put it up to let and it was let within 2hours of going on the market. I kept it for 2 years until the market picked up and sold in June 2015 and managed to break even on it.

So thats why.

If I have 'no idea', what does that make you? Advising people that fraud is OK, because they will probably get away with it like your mate did?
2 Likes #23
I've just paid off my mortgage and it was with Nationwide, the beauty with them is that you can pay off a bit extra each month and get rid of it quicker :).
1 Like #24
M_z
jrw
sniperpenguin
Be careful of using Nationwide if you ever want to consider letting out your property in the future.
There is a component called "Consent to Let" whereby you ask permission from your lender to rent out your property for a short time (say you move away, or life event, or simply move and want to keep the existing property). It is used regularly, especially if you dont yet have enough equity to move to a BTL mortgage.
Usual practise is the bank to either:
1. say yes in exchange for caveats (say, no DSS etc)
2. charge a nominal fee for admin (say £100) and issue you a cert. Some do it free.
Nationwide, on the other hand, throw a 1% penalty onto your mortgage rate for consent to let, and can cost thousands..... Beware.
Just let it out anyway
1. Likelihood is they won't find out (I rented mine out and got a new house with another mortgage through Nationwide and at no point was it ever questioned)
2. If they did find out they wouldn't care. They may send you a letter as my mate did and he just politely asked them what they wanted him to do as he said he couldn't afford a BTL mortgage, nor the 1% price hike. They just said nothing
In respect of the other comment @M_z - you have no idea. Like myself there are a lot of people that suffered from the market crash in March 2007 (I bought my house in Feb 2007) and when trying to sell in April 2012 the market was totally dead but needed to move. After 10 months i rented it out. Put it up to let and it was let within 2hours of going on the market. I kept it for 2 years until the market picked up and sold in June 2015 and managed to break even on it.
So thats why.
If I have 'no idea', what does that make you? Advising people that fraud is OK, because they will probably get away with it like your mate did?

It isn't fraud. Fraud would be telling them you aren't letting it if they asked you if they were. As long as they are getting their money every month and you have landlords insurance they do not care. It is simply a T&C to put people off doing this through choice but understand what an 'accidental landlord' is. In fact i went to nationwide for two different things and spoke to a financial and a mortgage adviser and they were well aware that I had two mortgages and the one house was let.

Also, not sure what a consent to let or BTL mortgage has to do with Landlords insurance with covers the building and tenants negligence. When i took the insurance out they didn't even ask if i had a mortgage, i volunteered the information and asked if it affected the policy.. Answer was no as its a policy to cover the building (bricks and mortar with the option for limited contents such as carpets), tenant negligence and to cover the landlord in the event of liability such as gas leak, explosion etc.
2 Likes #25
Worst TV ads ever.
Cracking on that they "care" whilst being complicit in ramping the price of shelter to stratospheric levels.
Not a building society.
They get free printed cash from central government and charge interest on it, and call it a business.
They no longer need savers money to run their operation.
They simply have no use for it. Why would they? When the free printed money machine is banging it out 24/7.

Here is the news. Nationwide do not "care" about you, and they certainly wont "Keep You Safe".
**** off.


Edited By: shindigger on Feb 17, 2017 15:25
1 Like #26
jrw
M_z
jrw
sniperpenguin
Be careful of using Nationwide if you ever want to consider letting out your property in the future.
There is a component called "Consent to Let" whereby you ask permission from your lender to rent out your property for a short time (say you move away, or life event, or simply move and want to keep the existing property). It is used regularly, especially if you dont yet have enough equity to move to a BTL mortgage.
Usual practise is the bank to either:
1. say yes in exchange for caveats (say, no DSS etc)
2. charge a nominal fee for admin (say £100) and issue you a cert. Some do it free.
Nationwide, on the other hand, throw a 1% penalty onto your mortgage rate for consent to let, and can cost thousands..... Beware.
Just let it out anyway
1. Likelihood is they won't find out (I rented mine out and got a new house with another mortgage through Nationwide and at no point was it ever questioned)
2. If they did find out they wouldn't care. They may send you a letter as my mate did and he just politely asked them what they wanted him to do as he said he couldn't afford a BTL mortgage, nor the 1% price hike. They just said nothing
In respect of the other comment @M_z - you have no idea. Like myself there are a lot of people that suffered from the market crash in March 2007 (I bought my house in Feb 2007) and when trying to sell in April 2012 the market was totally dead but needed to move. After 10 months i rented it out. Put it up to let and it was let within 2hours of going on the market. I kept it for 2 years until the market picked up and sold in June 2015 and managed to break even on it.
So thats why.
If I have 'no idea', what does that make you? Advising people that fraud is OK, because they will probably get away with it like your mate did?
It isn't fraud. Fraud would be telling them you aren't letting it if they asked you if they were. As long as they are getting their money every month and you have landlords insurance they do not care. It is simply a T&C to put people off doing this through choice but understand what an 'accidental landlord' is. In fact i went to nationwide for two different things and spoke to a financial and a mortgage adviser and they were well aware that I had two mortgages and the one house was let.
Also, not sure what a consent to let or BTL mortgage has to do with Landlords insurance with covers the building and tenants negligence. When i took the insurance out they didn't even ask if i had a mortgage, i volunteered the information and asked if it affected the policy.. Answer was no as its a policy to cover the building (bricks and mortar with the option for limited contents such as carpets), tenant negligence and to cover the landlord in the event of liability such as gas leak, explosion etc.

Your whole post revolves around the misconception that, as long as you don't lie to an insurance company in response to the limited amount of questions they ask, you're good. This is not the case.

Term: uberrimae fidei
1.
This term describes a class of contracts whereby one party has a duty to disclose material facts relevant to the subject matter of the contract to the other party. The is term applied in insurance contracts such that the insured legal person must disclose any relevant particular that may affect the insurer's decision to grant the insured a policy of insurance. In the event that a relevant disclosure does not take place, the contract is voidable at the option of the insurer
The duty may also apply to contracts for the sale of shares, land, and partnership.
The terms is also used in the context of fiduciary duties.
[Latin: of the utmost good faith].

Whether or not you have a BTL mortgage or consent to let would almost certainly be considered a material fact and non-disclosure could lead to the policy being invalid and claims being declined.

Personally, I've never saw an actual claim from someone in this position, which is the only way of testing whether an insurer would consider this a material fact and, indeed, may differ between insurers.

At a high level, I'd guess that most insurers would offer insurance, regardless of CTL or BTL status. Therefore, I'd think that it wouldn't fall under the "may affect the insurer's decision to grant the insured a policy of insurance" definition given above.

However, I would ALWAYS tell the lender whether or not I have CTL. If they don't have a problem, they'll tell you. If they do, then it does indeed fall under the above definition and claims may well be declined.

Edited By: marathonic on Feb 17, 2017 15:44
1 Like #27
shindigger
Worst TV ads ever.
Cracking on that they "care" whilst being complicit in ramping the price of shelter to stratospheric levels.
Not a building society.
They get free printed cash from central government and charge interest on it, and call it a business.
They no longer need savers money to run their operation.
They simply have no use for it. Why would they? When the free printed money machine is banging it out 24/7.
Here is the news. Nationwide do not "care" about you, and they certainly wont "Keep You Safe".
**** off.

Are you sure you mean Nationwide? Free government money?
1 Like #28
jrw
As long as they are getting their money every month and you have landlords insurance they do not care. It is simply a T&C to put people off doing this through choice

This is totally untrue. A lender may, at their discretion, grant you Consent to Let.

However, to say that they don't care whether you are letting the property is untrue. There are a whole host of reasons BTL mortgages are more expensive than residential mortgages - one of which I'll delve into further.

A recession that results in job losses results in a lot of people missing mortgage payments. Past experience shows that the mortgages of rental properties will experience the higher percentage of defaults in such a scenario. Such defaults can result in a requirement for repossession.

Taking the above into consideration, the lender that has unwittingly advanced you funds for a rental property as opposed to your own home now needs to deal with the legal requirements of repossessing a property in which a tenant resides, together with all their associated legal rights - which are constantly evolving.
#29
fixed in to my 3.29% 2 years ago :(
1 Like #30
bbsutton
i am more intrigued by the fact you are paying £345 :D for your mortgage , where do you live :D
I pay 268 :) live up norf it's cheaper
#31
bbsutton
i am more intrigued by the fact you are paying £345 :D for your mortgage , where do you live :D

What an idiotic comment.
The poster could have a released equity, could have bought years ago or any number of other reasons.

Your comment is extremely naive.
#32
red23
fixed in to my 3.29% 2 years ago :(

Don't feel bad, I rejected an offer from First Direct for an offset mortgage which would have fixed my mortgage and effectively a £50,000 overdraft at base rate plus 0.5% for the term of my mortgage. At the time I was on a discount rate with another 6 months to run so thought I'd sign up for it at the end of my current deal.
About a fortnight later the entire Western world's banking system collapsed and there has never been an offer anything like that good again.
1 Like #33
shindigger
Worst TV ads ever.
Cracking on that they "care" whilst being complicit in ramping the price of shelter to stratospheric levels.
Not a building society.
They get free printed cash from central government and charge interest on it, and call it a business.
They no longer need savers money to run their operation.
They simply have no use for it. Why would they? When the free printed money machine is banging it out 24/7.
Here is the news. Nationwide do not "care" about you, and they certainly wont "Keep You Safe".
**** off.

With the demise of Co-op bank Nationwide are now the most ethical option for high street/internet banking. They're still entirely owned by their customers (and likely to remain that way forever, as a new customer part of the agreement you sign is that if they ever float on the stock market all the profits from the sale of share will be given to charity - so they're safe from carpet-baggers destroying them like they did every other building society).
2 Likes #34
kooks65
I've just paid off my mortgage and it was with Nationwide, the beauty with them is that you can pay off a bit extra each month and get rid of it quicker :).


Not really the 'beauty of nationwide'. Since some time ago, all lenders have to allow up to 10% overpayments on fixed rate mortgages
#35
jrw
M_z
jrw
sniperpenguin
Be careful of using Nationwide if you ever want to consider letting out your property in the future.
There is a component called "Consent to Let" whereby you ask permission from your lender to rent out your property for a short time (say you move away, or life event, or simply move and want to keep the existing property). It is used regularly, especially if you dont yet have enough equity to move to a BTL mortgage.
Usual practise is the bank to either:
1. say yes in exchange for caveats (say, no DSS etc)
2. charge a nominal fee for admin (say £100) and issue you a cert. Some do it free.
Nationwide, on the other hand, throw a 1% penalty onto your mortgage rate for consent to let, and can cost thousands..... Beware.
Just let it out anyway
1. Likelihood is they won't find out (I rented mine out and got a new house with another mortgage through Nationwide and at no point was it ever questioned)
2. If they did find out they wouldn't care. They may send you a letter as my mate did and he just politely asked them what they wanted him to do as he said he couldn't afford a BTL mortgage, nor the 1% price hike. They just said nothing
In respect of the other comment @M_z - you have no idea. Like myself there are a lot of people that suffered from the market crash in March 2007 (I bought my house in Feb 2007) and when trying to sell in April 2012 the market was totally dead but needed to move. After 10 months i rented it out. Put it up to let and it was let within 2hours of going on the market. I kept it for 2 years until the market picked up and sold in June 2015 and managed to break even on it.
So thats why.
If I have 'no idea', what does that make you? Advising people that fraud is OK, because they will probably get away with it like your mate did?
It isn't fraud. Fraud would be telling them you aren't letting it if they asked you if they were. As long as they are getting their money every month and you have landlords insurance they do not care. It is simply a T&C to put people off doing this through choice but understand what an 'accidental landlord' is. In fact i went to nationwide for two different things and spoke to a financial and a mortgage adviser and they were well aware that I had two mortgages and the one house was let.
Also, not sure what a consent to let or BTL mortgage has to do with Landlords insurance with covers the building and tenants negligence. When i took the insurance out they didn't even ask if i had a mortgage, i volunteered the information and asked if it affected the policy.. Answer was no as its a policy to cover the building (bricks and mortar with the option for limited contents such as carpets), tenant negligence and to cover the landlord in the event of liability such as gas leak, explosion etc.


Where are your houses in London? Or elsewhere?

Thanks
1 Like #36
Just did a calculation, could potentially be saving near £200 a month. Roll on next 6 months when current deal finishes!!
#37
marathonic
jrw
As long as they are getting their money every month and you have landlords insurance they do not care. It is simply a T&C to put people off doing this through choice
This is totally untrue. A lender may, at their discretion, grant you Consent to Let.

However, to say that they don't care whether you are letting the property is untrue. There are a whole host of reasons BTL mortgages are more expensive than residential mortgages - one of which I'll delve into further.

A recession that results in job losses results in a lot of people missing mortgage payments. Past experience shows that the mortgages of rental properties will experience the higher percentage of defaults in such a scenario. Such defaults can result in a requirement for repossession.

Taking the above into consideration, the lender that has unwittingly advanced you funds for a rental property as opposed to your own home now needs to deal with the legal requirements of repossessing a property in which a tenant resides, together with all their associated legal rights - which are constantly evolving.


One thing I am also unsure of

Assuming the BTL ALREADY has a job and is second house is a BTL. With the rental income would that not be more money therefore less risk and should get a lower %??
#38
HSBC have cheaper interest rates for me on 5 year fix with no fees. 2.34% compared to Nationwide 2.49%
2 Likes #39
What's with the buy to let squabble? This deal is nothing to do with buy to let.

Your monthly repayments aren't really 345 though are they. With 1000 fee every 2 years that's 40 quid a month extra split over the term of discount.

Fees like this are a joke and make a mockery of the supposed rate because you are subsidising the discount with an up front lump sum.

Have a look at hsbc. 5 years fixed at 1.94 with zero fees.

Unless the mortgage is for a massive amount, that will always work out far cheaper in total.
3 Likes #40
I moved my mortgage recently from TSB to Nationwide, but kept the same monthly payment and instead decreased the term from 10 to 9 years + £250 one-off reward for taking the mortgage and no fee - really happy with this move so far.

Edited By: Kamilione on Feb 18, 2017 01:13: added no fee

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