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Agreement to Letting Fee now being charged by Mortgage Express

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Agreement to Letting fee now being charged by Mortgage ExpressIs Rob’s mortgage lender pulling a fast one by charging him an “Agreement to Letting Fee” or has he been lucky so far and actually got a relatively fair deal? Rob’s email as follows:-

“I own with a flat with a £225k residential mortgage on it from Mortgage Express. Six years ago I purchased a new home and got permission to let from Mortgage Express to let the property.

Every year for the last 6 years Mortgage Express have sent me a bit of paper to sign to renew the permission to let, no charge, no problem, easy.

However, today I have received my yearly permission to let form, but it is now more like a contract and they want an “Agreement to letting fee” of £1,250 per year!

Surely this cant be allowed?

Has anyone else had this problem with Mortgage Express??

Thanks

Rob Walsh”

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Comments

  • It is quite common practice for mortgage lenders to lead interest rates charged on residential mortgages by 1% when they grant permission to let. I’d say you have been very lucky for the last six years Rob and the rate you are now being charged is still reasonable. If you were to re mortgage at this stage, chances are you will be paying a much higher rate. £1,250 is a lot less than 1% of £225,000 too so it’s not a bad deal. It will pay to check your paperwork but I suspect you will find that they do indeed have the right to charge this. It it makes you feel any better you will be able to offset this charge against your rental profits to reduce tax.

    You have definitely made the right choice to disclose the letting though. Mortgage Express are looking for every excuse under the sun to call in mortgages which are in default. If you hadn’t disclosed that you are letting you may well have had a far nastier shock.

    Sorry that’s probably not the news you wanted to hear.


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  • Santander charged me a similar amount when I wanted to let my own house when I moved, but it’s not an annual agreement. I was outraged at the time, but at 0.49 over base for life I am enjoying the fact that I gave in rather than remortgage! Having to pay every year feels a bit harsh!


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  • Just spoke to mortgage express and they confirmed there usual fee is £100 but they have now increased this to £1250 per year for mortgage balances over 200k I explained there is nothing in my mortgage conditions about this and would like an explanation and to how they arrived at this new figure, and how they can legally justify an increase from 100 to 1250 and they could not answer me. A complaint has been filed and an answer will be issued within 8 weeks. They did however very kindly offer to add the £1250 charge to my mortgage balance and charge me interest on it for the remaining 19 years of the mortgage. Win win for them then.


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  • Just spoke to mortgage express and they confirmed there usual fee is £100 but they have now increased this to £1250 per year for mortgage balances over 200k I explained there is nothing in my mortgage conditions about this and would like an explanation and to how they arrived at this new figure, and how they can legally justify an increase from 100 to 1250 and they could not answer me. A complaint has been filed and an answer will be issued within 8 weeks. They did however very kindly offer to add the £1250 charge to my mortgage balance and charge me interest on it for the remaining 19 years of the mortgage. Win win for them then.


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  • If i were you i would try and get the balance down to £200k.


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  • Hi Rob I just wondered what the outcome was of your complaint with mortgage express? I like you was granted consent to let in 2011 with no expiry date I have all the letters from my application. I have heard nothing from them for 4 years until I phoned for a copy of the formal consent letter for my records 2 was ago now they are claiming I don’t have consent to let and want me to reapply and pay £750 per year. I have challenged this and they replied quoting the maximum term of letting was 6 months they seem to not know the difference between consent to let and a shot term tenancy agreement! I have since found letter and no where does it give an expiry date for consent to let. Any help and advice would be great.


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