Consent to Let - Halifax

LisaMarie1982

Hi,

Hoping someone might have some useful advice for me. I currently have a 1 bedroom flat mortgaged with Halifax, with my existing deal due to run out next year. My partner and I are trying to sell our flats with a view of getting a house together, but struggling to get buyers. I'd like to let out my flat and move into his - we're essentially paying duplicate bills with my flat sitting empty for most of the week, which seems a bit pointless.
I spoke to an independent mortgage advisor who has suggested letting the flat out and just redirecting my post. I'm not really keen on this option as it goes against the terms of my mortgage. Though I have heard various stories about Halifax insisting customers convert to buy-to-let, or hike the rates up considerably for a consent-to-let agreement.
Based on the price I paid for my property, I have a LTV rate of 88%. I have heard that Halifax usually requires at least 75% LTV. I was lucky with the price I paid for the flat - it was an inheritance property with a seller after quick money, so I paid significantly below asking price. Based on subsequent valuations (though not with Halifax), my LTV would be around 72-75% - would Halifax value the property at all in the CTL process, or am I stuck with the LTV on the price I actually paid for it?
I spoke to Halifax today to discuss potential options if I decided to apply for CTL and was told that I could apply to keep my existing tracker rate. This is my preferred option as my payments are pretty low and the rental income would easily cover them, plus a little extra on top of this.
I would pay some money to my partner to contribute to his mortgage (though my name would not be on it). I will probably keep my flat on the market until it sells, and he will sell his next year, at which point we'd look at buying a house. I will have no problems covering the mortgage if tenants don't cover the payments.
Not sure if anyone has any experience with Halifax. Basically, I need to some advice as to whether:
- Halifax will revalue my property, or if I'm stuck at 88% LTV. If so, is it worth paying some more towards my mortgage to put the LTV at 75%
- Is there any possibility I'll be able to keep my existing tracker rate, which is due to run out at the end of 2011.
- Can I apply for CTL if my property is on the market?
- I've heard various things about lenders only agreeing if the let is down to 'necessity'. What deems necessity? I'm guessing that moving in with my partner to save a bit of cash doesn't count, but would the fact that my flat has been on the market for 4 months and failing to sell contribute at all?

Any advice greatly appreciated!

Crinz

Phone Consent to Lease department on 08457 273747 (cant find the direct dial at the moment)

They recently took the consent to lease authorities away from branch staff so it is all dealt with on the phone. They seem to be quite flexible though.

If your current product has early repayment charges you will be allowed to keep it. They will probably only give consent to lease for the same term as you have remaining on that product. You will then be put on a consent to lease rate which is around 5.5%

If you dont have early repayment charges then you will be moved immediately.

There will probably be a fee of £1499 to do this as well.


You can pay £108 to have your property revalued by Halifax. If it is under 75% then you dont have to prove neccesity, you will still have to change rate as per above.

The policy has relaxed of late and I deal with a lot of csutomers who have been granted consent to lease on the phone when i would have declined them in branch.

LisaMarie1982

I have an early repayment fee - currently standing at about £2k, so sounds like I should be able to keep my existing terms. The £1499 fee doesn't sound great, but I figured they'd find some way to get some cash out of me! I reckon I'd save enough on bills to cover it.

Do you know if there's any clauses around overpaying on your mortgage if you're covered by CTL? I'd like to pay an extra £100-200 a month if possible. Take advantage before the base rate jumps up again, as I'm sure it will. I'm allowed to pay an extra 10% of my mortgage per year on my existing terms without being hit by fees - assume that still applies if I keep my terms of CTL?

Thanks for the reply :-)

Crinz

still applies.

currently as a concession you can overpay 10% of your product balance in a rolling 12 month period. This is applicable for fixed rate mortgages.

on trackers, you can overpay 20%

same situation for consent to lease as well

LisaMarie1982

:-) Thanks.

Lou.T_2

I'm hoping to get some advice here - I'm new to this forum thing so please be patient with me! I have read numerous posts both here and on other forums relating to Halifax. My situation is this:

We need to move closer to our extended family since our 2 sons came along, we have had our house on the selling market since Feb 2009 with no interest and have since put it on to the letting market and might just have found tenants, which was great we thought until I started looking into requirements of letting (our agent didn't enlighten us to any facts about getting consent from our mortgage lender and the possible tax implications of receiving rent!) So like the rest of you when I contacted Halifax I got a considerable shock, as we are currently on the SVR (3.5%) our payments have become lower for the last year but now they want us to pay a huge fee and change to a 6.9% fixed CTL mortgage which will increase our payments by 38%. Needless to say the rent would have covered the current mortgage payments but with this hike we will be severely out of pocket.
Having read about those of you who are still on a 'deal' and were not forced to move to this ridiculous CTL rate - is it worth my while applying for a 'deal' - which I think I could currently qualify for their 4.19% fixed for 2 years - and then apply for CTL or are they going to enforce the 6 month on the new rate before considering an application?
My frustration is that we are doing this out of necessity as my husband is SEmplyd Joiner and things are very very quiet now. We know the first qtr of any year is quiet too so we are predicting next to none earning from him then. Essentially we are forward planning to ensure that our mortgage is paid over the next year by relocating (cuts travel costs for work and childcare costs) but in doing this Halifax seem to be looking less favourably at us - its almost like they want us to default!

Your advice is greatly appreciated

thanks,