Buy to Let to SVR

andywsl

Hi

Im after a little advice.

A couple of weeks ago I spoke to Halifax regarding my g/f 's Buy-to-Let Mortgage. I asked them what would happen at the end of her current fixed rate deal. They told me quite clearly that she would move over to their Standard Variable Rate (and not some special BTL SVR, as I suggested)

I then sat down and did the maths as she has just moved into the last 12 months of her deal. I worked out that she could pay the early repayment charge for the 12 months, and that her savings on her payments over the next 12 months would outweigh this charge. She would effectively move from a 6.5% BTL deal to their current 3.5% SVR deal. (I am aware that in their SVR rises in the next 12months the gain is less, or it may ever work out as her being worse off).
One of the other benefits of us doing this, is that it allows us a degree on safety, in that if the base rate where to suddenly rise in the next 6 months, we could quickly lock her into another deal.

She has just got off the phone with Halifax, and they have told her that she is not able to do this. If she pays her early repayment charge, she must immediatly move onto another deal, and pay the arrangement fees etc.

Can anyone give me any advice here? Is this legal? Arnt they breaking there own T&C's. Has anyone experienced a Halifax BTL deal running out? Has anyone tried to do what we are trying.

Thanks

Andy

dimbo61

The Halifax can do this and other people on this site have also found out that other lenders have refused to tranfer from one fixed rate deal to a cheaper/lower fixed rate or SVR deals.
most lenders will not let you take out a SVR mortgage deal!
Your G/F will have to sit out the last 12 months of her existing deal and then it will drop onto the SVR whatever that will be then !!!