Caught Out by Halifax

dawniebaby2005

Hi was hoping for some advice. I have a house that I have been renting out for 5 months and the Halifax has now written to me stating that having a tenant is against my mortgage policy rules. My mortagage fixed rate has a year to run.
Can I just ask if anyone has had similar with the Hailfax, and if I now ask permission will it be granted?
The letter states that I will have to pay 1% more interest. Has anyone ever had consent from the halifax without having to pay more. It appears that some other banks just give permission with a £100 admin charge.
Also if they make me change to a buy to let mortgage will I have to pay my early redemption fee against my current mortgage? Quite worried about this as don't have funds available.

Dawniebaby2005

Thrugelmir

How much is your property worth and what is the outstanding mortgage?

dawniebaby2005

Its worth about £170 and the outstanding amount on the mortgage is £135K. VMT

herewegoagain2010

We've got a consent to lease from the Halifax, but are on a normal residental mortgage. We applied and was accepted because of my DH working life meant we can't live in it currently.

To be honest I think they've got you over a barrel as you've broken the terms of your mortgage and been caught. An interview in your local branch to explain your side wouldn't hurt, but i don't hold out much hope.

ILW

Was the house bought for the purpose of renting out?

Thrugelmir

dawniebaby2005 wrote: »

Its worth about £170 and the outstanding amount on the mortgage is £135K. VMT

Borderline for a BTL mortgage in lending terms. Is the monthly gross rental 125% of the mortgage payment ?

Can I just ask if anyone has had similar with the Hailfax, and if I now ask permission will it be granted?
The letter states that I will have to pay 1% more interest. Has anyone ever had consent from the halifax without having to pay more. It appears that some other banks just give permission with a £100 admin charge.

At the end of the fix term. Halifax could impose whatever rate they wished on you (within reason). You've broken the agreement. So they may wish to encourage you to take your business elsewhere.

May be worth considering the options for the property. As you'll be black marked in the banks credit records. Something other lenders will be aware of.

kingstreet

I have a client with a Halifax mortgage. Out of penalty, on SVR.

He wanted to sell, but couldn't. He thought about renting out, so I suggested he contact Halifax about consent to let.

They insisted he;-

- switch to another product with a higher rate and arrangement fee
- accept he would have to pay a penalty to get out if it sold in six months time
- write to them to confirm he was not renting it out if he didn't change products, otherwise they would assume he had done so without consent.

Fortunately, we found a buyer and he bought a new home. The new mortgage was not going to be going to Halifax, as you might have guessed.

dawniebaby2005

Thanks for all the advice. I have to say that the Halifax were wonderful. They agreed consent to let and did not make me change my product. This will happen when it expires in May 2012. The only criteria was that the income from rent was 125% of the monthly mortgage payment. It is actually 200%.

Thanks again

dimbo61

be ready before may 2012 if you want to keep renting or sell property

moneybunny123

I asked the Halifax for a Consent to Lease, and was told I couldn't have one (don't know why). They insisted I have a buy-to-let instead, which meant a higher rate of interest and an admin fee.