For existing customers wishing to let out their property an application fee and additional letting interest rate may be charged. Please choose the appropriate option below for more information:
- For customers who are not currently letting and wish to apply for permission to let more information can be found here.
-
How to apply
Our contains the terms and conditions for letting your property. You will need to complete and return the form (signed by all borrowers) to Mortgage Servicing, Nationwide Building Society, Kings Park Road, Moulton Park, Northampton, NN3 6NW. We will then consider your application and advise you in writing if permission has been granted.
Letting application fee
The letting application fee referred to in the is applicable to all new rentals where permission has been granted by Nationwide. This fee will be added to the loan upon the letting being approved.
Additional letting interest rate
For new letting requests* an additional letting interest rate of 1.5% (variable) will be charged on all accounts (exclusions apply) when you have been letting your property for more than 6 months with Nationwide’s permission. Notification of your new monthly payment will be sent approximately 2 weeks before it is due.
* Please note that if you have had a previous letting arrangement in the last 6 months, we will treat this application as an extension of your previous arrangement, unless you can provide us with proof that you have re-occupied the property.
We will give you reasonable notice of any change to the additional letting interest rate. We will notify you of any changes by amending our .
- For customers who have had a letting agreement in place before 1st September 2010 and are continuing to let their property more information can be found here.
-
Where a Nationwide agreed letting arrangement was in place before 1st September 2010 you will be contacted as follows:
If our records show you have been renting out the property for 3 years or more as at 1 January 2011 and you are outside of your current letting agreement with Nationwide, you will be contacted in December to renew your letting arrangement and this will include details of when the additional letting interest rate will be applied to your account(s).
Or
If our records show you have been renting out the property for less than 3 years as at 1 January 2011, you will be contacted shortly before your 3rd anniversary of letting to renew your letting arrangement and this will include details of when the additional letting interest rate will be applied to your account(s).
Letting application fee
The letting application fee referred to in the new is only applicable to new rentals authorised and approved by Nationwide from 1 September 2010.
- How do I find out what my new monthly payment will be?
-
We will write to you approximately 2 weeks before the additional letting interest rate is due to be applied to your account to confirm what your new monthly payment will be.
You can also get an indication of how the 1.5% additional letting interest rate could impact your monthly payments by using our payment calculator.
The tables below provide some examples of how the change might affect your monthly payments. Please note these figures assume the current BMR rate of 2.5% (with the additional letting interest rate of 1.5%), and are for illustration purposes only. These do not account for any overpayments made, or a repayment method made up of part interest only and part repayment.
Repayment mortgage
| Term remaining |
5 years |
10 years |
15 years |
20 years |
25 years |
| Mortgage amount |
Monthly increase in payments |
| £25,000 |
£16.73 |
£17.44 |
£18.22 |
£19.02 |
£19.81 |
| £50,000 |
£33.46 |
£34.88 |
£36.45 |
£38.04 |
£39.61 |
| £100,000 |
£66.91 |
£69.75 |
£72.90 |
£76.08 |
£79.22 |
| £200,000 |
£133.83 |
£139.50 |
£145.80 |
£152.15 |
£158.44 |
Interest only mortgage
| Term remaining |
5 years |
10 years |
15 years |
20 years |
25 years |
| Mortgage amount |
Monthly increase in payments |
| £25,000 |
£31.25 |
£31.25 |
£31.25 |
£31.25 |
£31.25 |
| £50,000 |
£62.50 |
£62.50 |
£62.50 |
£62.50 |
£62.50 |
| £100,000 |
£125.00 |
£125.00 |
£125.00 |
£125.00 |
£125.00 |
| £200,000 |
£250.00 |
£250.00 |
£250.00 |
£250.00 |
£250.00 |
- I am a member of the British Armed Forces renting out my property. Do these changes affect me?
-
You will not be charged the letting fee or additional letting interest rate if our records show you are a member of the British Armed Forces renting out your property. However, please remember that you must contact us if this situation changes.
Please note that if you are a member of the British Armed Forces and are thinking about renting your property or you are renewing your permission to let your property you must continue to apply for permission to let your property using our .
- I have been renting out my property since before 1st September 2010, which Nationwide is aware of, and I am continuing to let my property. When will the 1.5% additional letting interest rate be applied to my account?
-
We will not start charging you until you have been renting out the property for 3 years or more. If our records show you have been renting out the property for 3 years or more as at 1 January 2011 and you are outside of your current letting agreement with Nationwide, you will be contacted in December to renew your letting arrangement and this will include details of when the additional letting interest rate will be applied to your account(s).
If our records show you have been renting out the property for less than 3 years or more as at 1 January 2011, you will be contacted shortly before your 3rd anniversary of letting to renew your letting arrangement and this will include details of when the additional letting interest rate will be applied to your account(s).
- Who will the £50 letting application fee apply to?
-
This will apply to all new authorised and approved letting applications received from 1 September 2010 onwards. If a customer with a current letting agreement with Nationwide (before 1 September 2010) terminates this agreement with Nationwide and then applies to rent out the property again from 1 September 2010 onwards, they will also be classed as a new letting*. If you have more than one mortgage account on the property, only one fee will apply.
* Please note that if you have had a previous letting arrangement in the last 6 months, we will treat this application as an extension of your previous arrangement, unless you can provide us with proof that you have re-occupied the property.
- My letting application form has been approved and the £50 letting application fee has been added to my mortgage account. Can I pay the £50 now?
-
Yes. After your letting application has been approved the £50 letting application fee will be added to your loan. Your mortgage balance will be recalculated at the year end to take this fee into account and interest will then be charged on the increased balance.
If you would like to pay the fee to avoid your balance increasing, you can make a one off payment by Direct Debit, online bill payment, cheque or cash at any of our branches or you can post a cheque to us. Please make your cheque payable to Nationwide Building Society followed by your name and mortgage account number and send it to the Nationwide Building Society Mortgage Servicing, Kings Park Road Moulton Park Northampton NN3 6NW.
- If I am thinking of renting out my property, or I am already renting it out but have not informed Nationwide, what should I do?
-
Under the terms and conditions of your mortgage, you must seek agreement from Nationwide to rent out the property prior to commencing the let and any breach in these conditions could lead to further action being taken.
You will need to complete a . Please send your completed form to:
Mortgage Servicing - Lettings
Nationwide Building Society
Kings Park Road
Moulton Park
Northampton
NN3 6NW
Remember, you need to consider whether renting out your property will affect your property insurance policy. You should therefore discuss this with your property insurance provider.
- What if I'm no longer renting out my property?
-
Please inform us in writing with your new postal address so we can amend our records. If you still require an alternative postal address, please include confirmation of this and what the current situation is regarding the property. Your letter must be signed by all parties to the mortgage and addressed to:-
Mortgage Servicing - Lettings
Nationwide Building Society
Kings Park Road
Moulton Park
Northampton
NN3 6NW
We will then amend your account accordingly. Please note under your mortgage terms and conditions you must seek authorisation from us to rent out the property in the future and any breach in these conditions could lead to further action being taken.
- What if I can't afford any of the revised fees and charges?
-
If you are facing payment difficulties (even if you are not yet in arrears) please talk to us as soon as possible on 0845 600 9626.
- I have been renting out my property with Nationwide's consent but I've noticed my consent has expired. What should I do?
-
You will need to reapply to Nationwide for consent to extend your letting arrangement. We are writing to all customers whose letting consent has expired or will be expiring before 31st December 2010 and asking for a to be completed and returned to us.
If your letting agreement will expire after 1st January 2011 you will need to reapply for consent to let your property at the appropriate time in the future. We will contact you closer to the end of your letting consent period setting out the next steps.
If you have any queries that have not been answered above, please call us on 0800 030 0457.