Halifax consent to let

Jackboy29

I am 1 year into a 3 yr 6.09% fixed rate residential mortgage that i took out last year with my brother. He has since had a baby and wants to move out and i may move in with my girlfriend. I've just spoken on the phone regarding consent to let and the guy told me it's a very easy process costing approx. £400 and my rate wont change and no early repayment charges will apply. I mentioned that my proerty wldn't meet the 25% deposit and 125% Rental income ratio as would be needed for a BTL mortgage but he said that doesn't matter and he's never heard of consent to let not being granted.

This seems to be slightly different to other peoples experiences i've been reading about with halifax where they charge large admin fees adn higher interest rates. Has something changed with halifax recently or is he just trying to get me into the branch so they can throw charges at me?

cheers

silvercar

I suspect that having had the mortgage for a year shows you are genuine with a change of circumstance, rather than someone who buys on a residential mortgage intending to let from day 1.

katiecubs

I'm going to meet halifax this saturday to discuss getting a consent to let. They said i would need to apply and this would be granted for 6-12 months and then reviewed after that.
I also wondered if they had changed their policy recently as a few months ago i called up and they said the only option would be to move onto a BTL!
If they don't increase my rate that will be great!! :-)

Jackboy29

ok, sounds promising. please post up here what happens and i might go see them monday and will report back what they say to me.

thanks

katiecubs

Hi the mortgage advisor just called me and said that she could discuss it over the phone.
Basically our current deal is comming to and end so she said we can trasnfer to a 3 year consent to lease product at 5.49% which although slightly higher than what i am on (5.25%) i don't think its that bad. The one sore point in the £1,249 arrangement fee which is a bitter pill to swallow!

Sunshine12

Im with halifax and about to rent. Called them and they said no problem providing i dont rent for longer than 3 years. (may be different scenario as Ive owned property for a while)

Cinders001

When I called Halifax to make enquiries I was told I would need to visit my branch to get a decision.

I have owned my property for 3 years and am about to come to and end of my fix rate mortgage 5.89% to the variable 3.5%. Everything I have read says the Halifax charge you and will switch you to a BTL/consent to let mortgage.

Has anyone in my kind of position been told the same as sunshine12 ? If so that makes me very happy

katiecubs

Hi Cinders, my situation is exactly the same as yours. Halifax don't let anyone rent out their flat on the SVR rate so you need to move onto a new consent to let product - as this is 5.49% currently it should work out cheaper for you anyway.
I think if you are not coming to the end of your deal they will let you rent it out on your current rate - Sunshine is this the case and if so is there any sort of fee for this?
Katie

Tbonetone

We're trying the same thing with Halifax. Already on SVR but so far Halifax have suggested they will not offer the consent to lease at all! Rental would easily be over 125%. Everyone on here is suggesting there is a new Consent to lease product at 5.49% (Katiecubs quote above) but I can't find anything with Halifax. Any ideas? Tony

katiecubs

That sounds odd who are you speaking to? Perhaps arrange an appointment with the mortgage advisor at your local branch.
The CTL is a standard product which should be available to everybody - i have the documentation from Halifax to confirm this.
They have also send me an application form - the advisor said that the most important part of the form is the reason why you need CTL. You need to have a valid reason i.e expanding family, moving location for work etc which will prove it's necessary and not for financial gain.
There is not criteria to meet the 125% rental value - it's not even part of the form - as this is not a BTL product it does not apply.
Hope that helps,
Katie

Tbonetone

Ah, I think the "valid reason" may be the stumbling block with Halifax. Moving in with your partner may not be reason enough although combining the market value of the property i.e. can't afford to sell, with wanting to live with my partner and the fact that HBOS are part owned by the tax payer, you would have thought would be enough!
Trying to live together whilst running two households is really hard. We don't want to "make money" from the flat, simply to retain it until such time as it is worth what was paid for it! Sounds like Halifax are trying to make money themselves by lumping us in with professional landlords. We are simply reluctant landlords from the perspective of market conditions and the fact we believe we have a right to live together without being penalised by a banking group! Cheers for the advice. We could threaten to move the mortgage anyway but I doubt they'll care much! Tony