converting to consent to lease near end of mortgage

designconscious

Hi, I've been looking into moving for a new job but don't want to sell now with the way things are in the market so looking into becoming one of the growing reluctant landlords.

I am with Halifax on a fixed 3 year deal of 5.78% which comes to an end this April.
My LTV is 85%

After phoning Halifax for advice they said I could go onto a consent to lease at our current fixed interest rate of 5.75% until the end of the mortgage (April) but then wants to force me onto a fixed 3yr buy-to-let mortgage at the high interest rate of 5.94% plus additional £1250 arrangement fees.

But from what the adviser implied if I wait until the end of the current mortgage and buy another product off them (say 3 yr fixed) and THEN ask for consent to lease once the new product is in place I will pay the interest at whatever that product is (currently 4.7%!!!).

Does this sound right?
I guess this would be fraud of some sort?

Thrugelmir

Ring again and clarify. Better still pop into a branch and speak face to face. As you don't want any misunderstanding.

CloudCuckooLand

Definite fraud.

Don't quite see why you have happily been paying 5.78% for 3 years, but you consider 5.94% to be "high"...

0.16% extra for the ability to charge a market rent & therefore make a profit, is peanuts.

As for the £1250 fee, if you shop around you would see fees such as £495 or £995 for a remortgage on a simple residential mortgages...