Mortgage rant !!!

The number of people recommending fraud to weasel out of paying the entirely justifiable higher rate for a much riskier product is astounding.
 
holymonk said:
Having worked for Nationwide for a number of years previously I would suggest this:-

1. Call them, explain you have moved back into the home.
2. If they don't play ball tell them you are not being treated fairly and would like to make a complaint. They way it works in Nationwide is the person who is on the phone has to deal with the complaint. Employees are encouraged to resolve the complaint within 2 working days so its classed as 'feedback' and it does not have to be officially logged with the FSA.
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Erm, thats not how FSA complaint recording works.

Complaints resolved within one working day do not have to be catergorised, but are still reported. Anything over this has to be categorised when reporting in. Simply resolving a complaint quickly does not make it non FSA reportable in terms of numbers.

Even so, you are advising him to commit fraudulent activity, which for someone who works, or has worked in the industry, is simply abhorable.
 
Banzai_Joe said:
House value = £93k
Outstanding Mortgage = £69,400
Rent £450

On paper it looks like my rent will easily cover the mortgage, but i'm trying to reduce the term from 18 years down to 15, add to that the fact that a BTL are typically 1.5% higher than standard mortgages, it's gonna cost me quite a bit more than 'expected'.

In reality its the expected rate we had in mind that is now not going to happen due to nationwide ballsing up that galls me. We now have to rethink our finances to the tune of approx £100 per month.
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Having done a quick search, the Skipton might be worth a look for you. Bear in mind I haven't had the time to look into the full ins and outs of their product and policy - Maybe go back to your broker and ask them to look for a BTL remortgage for you.
 
Banzai_Joe said:
So i'm ****** then?
If a BTL is approx. 1.5% above the regular rate that will really hammer me. What i charge in rent certainly won't cover it, and if i increase the rent i run the risk of the tenants leaving.
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Yup, btl is more expensive, chck northern rock, earlier this year they had the best buy to let deals.
I was turned down for a northern rock application, utter idiocy on their part, but it was flagged on a credit check that was simply inaccurate.
Try them anyway.

No idea why any lender would give you a normal homeloan when that isnt what you should be applying for.
 
Phreaky said:
The number of people recommending fraud to weasel out of paying the entirely justifiable higher rate for a much riskier product is astounding.
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Aah then maybe you can answer your bit in bold then. Because i don't get a decent answer from the lenders.
Why is it 'much' riskier?
 
Banzai_Joe said:
Aah then maybe you can answer your bit in bold then. Because i don't get a decent answer from the lenders.
Why is it 'much' riskier?
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It's all to do with default rates and attitude to payments.

Previously mentioned by someone else, you may go through periods of time with no tenant, or time where your mortgage payment is not covered by the rent, or times where you have large repair bills to pay on the property. In such events, what are you going to prioritise if you can't afford both; your BTL mortgage payment on the house you do not live in, or your own residential property?

The answer is always your own property, as that is most important to you in terms of saftey and security. Thus default rate on BTL mortgages tend to be higher.

Also because of tenants rights, taking possession of a BTL property can be a very long and drawn out process. This means that the lender is losing more money on this type of possession whilst the proceedings are taking place, therefore if the lending was at the same rate as a resi mortgage then the return on capital would be an awful lot lower.
 
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