Letting application fee and interest rate
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:
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How to apply
Our permission to temporarily let application form (PDF 109KB) 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 Tariff of Charges (PDF 64 KB) is applicable to new rentals where permission has been granted by Nationwide.
Additional letting interest rate
For new letting requests* an additional letting interest rate of 1.5% (variable) will be charged to all accounts (some 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 Tariff of Charges (PDF 64 KB).
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Where a Nationwide agreed letting arrangement is already in place, the 1.5% additional letting interest rate (referred to in the new Tariff of Charges (PDF 64 KB) will be applied to your account in the following circumstances:-
If our records show you have been renting out the property for 3 years or more as at 1 December 2010, the additional letting interest rate will be applied to your account on 1 December 2010.
Or
If our records show you have been renting out the property for less than 3 years as at 1 December 2010, the additional letting interest rate will be applied to your account on the 3rd anniversary of letting.
Letting application fee
The letting application fee referred to in the new Tariff of Charges (PDF 64 KB) is only applicable to new rentals authorised and approved by Nationwide from 1 September 2010.
Permission to temporarily let application form (PDF 109KB) .
Frequently Asked Questions:
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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 -
You will not be charged the letting fee or additional letting interest rate if our records show you are a member of the British 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 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 permission to temporarily let application form (PDF 109KB).
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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 December 2010, the additional letting interest rate will be applied to your account from 1 December 2010.
If our records show you have been renting out the property for less than 3 years as at 1 December 2010, the additional letting interest rate will be applied to your account from the 3rd anniversary of letting.
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Yes, the 1.5% additional letting interest rate is related to the property being rented out rather than the mortgage itself, so the 1.5% additional letting interest rate will be applied to all mortgage accounts whenever a property is rented out for more than 6 months on new authorised lettings and for 3 years or more on properties already being let with Nationwide’s permission. The BMR is still guaranteed to be no more than 2% above the Bank of England rate, however the 1.5% additional letting interest rate is payable in addition to the product rate. For example, if the Bank of England rate is 0.5% the BMR will be 2.5% (including the 2% guarantee) and the additional letting interest rate of 1.5% will be added to the mortgage account to give a total rate of 4.0%.
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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.
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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 will be taken very seriously.
You will need to complete a permission to temporarily let application form (PDF 109KB). Please send your completed form to:
Mortgage Servicing - Lettings
Nationwide Building Society
Kings Park Road
Moulton Park
Northampton
NN3 6NWRemember, 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.
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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 6NWWe 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 will be taken very seriously.
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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.
If you have any queries that have not been answered above, please call us on 0800 030 0457.