HALIFAX MORTGAGES Consent to lease rates versus their Standard Variable Rate

mands2000

Hi everyone,

I received the same type of letter today titled Lapsed Consent to Lease. The outline of the letter basically states that I need to confirm whether I am still renting out the property or not and that i will need to re-apply for their consent to let and to transfer to one of their consent to let 'products' (get the feeling this could be a way of making money as they are trying to squeeze as much as they can from anywhere!) If you do not contact them (no timeline given) then I will automatically get an additional rate of 1.5% on top of the variable base rate.

All i would like to know if this is all legit what Halifax are requesting.? Please only 'constructive' responses! Many thanks!

kingstreet

What they are doing is perfectly legitimate.

You are likely to find the cost of transferring to a formal buy to let product with another lender just as expensive.

gents

On the one hand, the Banks are within their rights because of the mortgage agreement.

I’ve had consent to lease for 3 years and now they refusing to continue the consent to lease. I’ve never missed a payment and I have had stable tenants for the past 3 years. This country is in financial crisis because of the banks. The government has lowered the interest rate in order to increase public spending. It’s taxpayers who have bailed the banks out of trouble. Do you think it’s right for the bank to say to me “pay us an extra £1k and £120 a month” for nothing – just because they can?

They are able to say “lets carry on the consent to lease agreement we’ve had”, but because of their “policy” they’re not doing that. It’s WRONG! Someone needs to do something about this!

bigadaj

I believe that the consent to lease has only been available widely over the past few years and was, unusually, a pragmatic response by he banks to the fact that the housing market was not moving. It is specifically there to allow some flexibility and breathing space, within the three years the householder needs to determine whether to sell and, if not, will go onto a buy to let mortgage, the latter being higher risk and so more expensive. Not a fan of the banks but can't see anything wrong with the way they have dealt with this issue.

Idonex

I'm suprised you even got a consent to let with the Halifax. When we were letting my girlfriends flat out they told us in no uncertain terms there was no such thing as a consent to let, and they made us move to an actual consent to let mortgage straight away (which as far as i can tell was just their standard buy to let mortgage). The process for this took about 4 months because no one at Halifax seemed to have one clue between them about how their companies processes work.

I've yet to suffer another company as completely and utterly incompetent as Halifax and suffice to say won't be renewing with them when the mortgage is up. They annoyed us so much at the time we moved all my girlfriend's Halifax ISAs elsewhere.

Thrugelmir

bigadaj wrote: »

I believe that the consent to lease has only been available widely over the past few years and was, unusually, a pragmatic response by he banks to the fact that the housing market was not moving.

Not so. Consent to let has been a feature for many years. Normally granted where people moved abroad or distance for work on a temporary basis. Where the intention was to return to the property at a later date.

The key word is temporary.

Thrugelmir

gents wrote: »

I’ve had consent to lease for 3 years and now they refusing to continue the consent to lease.

3 years has historically been considered a reasonable period for the granting of CTL.

If you are letting property as a business on a long term basis then other forms of finance are more appropriate.

gooner69_2

i have also had the letter etc from Halifax, the first letter saying we could go on variable 3.5 then a further letter 2 weeks later saying you should now panic & purchase a new mortgage. the consent to lease rates offered are ridiculous compared to other lenders, it is a minefield with rates add on & charges to re value etc. We have gone by the book from day one & the point being that Halifax are taking advantage of this, why allow to re consent for a further three years but charge £999 and only one rate on fixed available. I have been passed from phone to branch & they are very limited on their knowledge, you do have to go direct to their consent to lease people who are not helpful & just explain thats the rate no room for any room for offers take it or leave it, despite being a loyal customer etc etc they just want to charge high rates. We were charged £1000 to start a fix, then £1000 one year later to go to consent to lease now a further £1000.....if you can be bothered to go elsewhere you will save, but be careful to check all fees payble to go to a buy to let! well done Halifax, no wonder why they are paying people to bank with them.

Thrugelmir

gooner69 wrote: »

the consent to lease rates offered are ridiculous compared to other lenders,

There's a changing market underway. So expect other lenders to follow in due course. HBOS was exceptionally lax in lending. The new management are merely reinstating the rules of old.

BoGoF

gooner69 wrote: »

i have also had the letter etc from Halifax, the first letter saying we could go on variable 3.5 then a further letter 2 weeks later saying you should now panic & purchase a new mortgage. the consent to lease rates offered are ridiculous compared to other lenders, it is a minefield with rates add on & charges to re value etc. We have gone by the book from day one & the point being that Halifax are taking advantage of this, why allow to re consent for a further three years but charge £999 and only one rate on fixed available. I have been passed from phone to branch & they are very limited on their knowledge, you do have to go direct to their consent to lease people who are not helpful & just explain thats the rate no room for any room for offers take it or leave it, despite being a loyal customer etc etc they just want to charge high rates. We were charged £1000 to start a fix, then £1000 one year later to go to consent to lease now a further £1000.....if you can be bothered to go elsewhere you will save, but be careful to check all fees payble to go to a buy to let! well done Halifax, no wonder why they are paying people to bank with them.

I'm not sure how you can say your loyal when you took out a residential mortgage then you moved the goalposts. If you had went 'by the book from day one' you would have been on btl rates from day one.

I'll think you'll find most banks are paying people to bank with them.