Consent to Lease - Halifax

Jon77_2

Hello

I have an existing 5 year fixed mortage with Halifax at 3.99%. I am about to relocate overseas and went to see my local branch of the Halifax to arrange consent to lease as I plan to rent the property.

I had previously been told by the Halifx that it would cost £75 and was a straight forward process.

However, when I had the meeting with the chap in the Halifax I was horrified to learn that not only would I have to adopt a new mortgage deal at a cost of £199, but my interest rate would increase by a massive 2% to 6%.

I am still within the redemption period of my existing mortgage so cannot get out without incurring penalties. Having discussed with an advisor it seems that incurring redemption penalties and moving to a product with a lower interest rate would not make sense due to the extra fees involved.

My question is this:

Has

• anyone out there had a similar experience?
• If so, has anyone had success in negotiating the increased rate downwards? 6% seems v.high to me for a BTL fixed rate...

I recognise Halifax have got me over a barrel, but I feel I am being ripped off by them and am not prepared to take this lying down!!!

Thanks in advance for any help the forum can provide me with......

payless

Heard some strange stories from others in same position with this lender in how they now look at whats acceptable to "let" ...
although no mention of the rate hike ( just refusal based on rental yield .. although they would not accept chap was still earning anyhow) .... that said no doubt they are likely within their rights to refuse or impose fees & rate change or request repayment( with fee) if you do let -

just look on the bright side, you have had benefit of yout current ( very competitive deal) for a while.

regularsaver1

This started last september and as the Halifax do not do Buy to let mortgages, when they permitt to let (3 years ) you now have to change your rate and the product costs £199. (The only time you don't have to change your existing product is if you are forces)

Previously the fee was £75 but was for one year.

The products they provide depend on your loan to value, the higher being over 75%. You don't pay a £199 arrangement fee to go on standard variable but then they only waiver the fees to take you off the existing product if you change to a consent to lease product.
If then you move back in, within the 3 years you have to then change to a normal range product.

It is in the mortgage conditions book that they reserve the right to do this when I questioned.
The reviewer in branch must sign the consent form and change product - this is sent to business centre. if the product does not match then the consent will not be applied.

MikeLB

Yup, Halifax system changed fairly recently. I am still under the old £75 Consent to lease scheme (which covered me for 5 years in total and I was only charged 2 fees of £75!) with no interest rate change.

When I went to my mortgage review last year, I was offered the new Consent to Lease Mortgage which cost £199 plus an interest rate change. But as I was under no obligation to change, I left it especially as I was planning to move back into the house in the next 12 months and I would have had to change product again under that circumstance.

regularsaver1

Yes MikeLB you did not need to change, but when yours ends if you still want to let you will have to. Also they will not be renewed and will be point in direction of BTL;'s