Northern Rock - beware ! ! !
Has anyone else had any issues with Northern Rock not allowing people to rent out their house ?
In 2006 I decided that it was time to invest in getting myself on the property ladder and took out one of the Northern Rock ‘Together Mortgages.’ At the time, this suited my personal circumstances. I had no savings and the offer of a 100% mortgage was an attractive one to a young professional who could afford the monthly payments.
I moved into my house in Stokenchurch in January 2007, a modest little 3 bedroom terraced house.
Since then, I have always ensured that my bills are paid on time, and have always maintained a good job.
In January this year, I was threatened with the risk of redundancy from my company, and not wanting to join the queues for job-seeker’s benefits, I started to look around for alternative employment. I was offered a job with another company, on pretty much the same package.
This was in the height of the economic crises (which had hit the Construction Industry severely), and I was pleased that I had been offered a job without having to take a drastic reduction in salary.
Unfortunately, the commute to my new work location soon began to take its toll, and rather than end up as an accident statistic on the M40 due to my early mornings and late nights, I asked Northern Rock if I could get their ‘Consent to Let’ my property. This would enable me to rent another property closer to where I work and have a decent quality of life again without the constant tiredness that I feel at present, and the threat that I may end up having an accident on the motorway one day traveling to or from work.
To be honest, I thought this would be a mere formality, but today I received a letter from Northern Rock informing me that they had declined my request until such time as I reduce my loan-to-value by £100,000. Like anyone has that amount of spare money !
I am now faced with a dilemma.
1 I continue to live where I am and resign myself to the fact that I will always have my quality of life impaired due to Northern Rock’s inflexibility an lack of compassion for quality of life and that I pose a constant risk to both myself and other motorists on the M40 each time I travel to and from work
2 I hand over my keys to Northern Rock and inform them that I am not able to live at the property any longer and that they are to commence repossession proceedings
Has anyone else experienced Northern Rock's completely inflexible Letting's policy?
Does anyone have any guidance as to what I can do ?
I'm not worried about losing the house - let them take it ! What I do have concerns about is the repercussions in the future for getting another mortgage.
Any guidance greatly appreciated.