Mortgage Providers Consent to Let

Fairdo_2

Agree with payless (as always).
However, I do know about the Halifax state of play. I have been finding out for my old next door neighbour. I als osuggested he go in to the Branch and find out directly as well, but it is as a proevious poster has mentioned. They do have completely different products for Consent to Let and this is their right. I haven't seen it asked yet, but does the OP have a current Redemption charge if they leave the Halifax, because I would suggest it be taken on a Buy To Let Remortgage if it needs changing. Or it could be taken elsewhere on a residential basis to a mainstream lender who would not charge or load the rate on providing a consent to let further down the line. Most lenders would require the property to be lived in for 6 months on their mortgage first before consenting to let, but there is a lender out there who would consent straight after completion. I am not too sure on naming names here as I am a Mortgage Broker, but need advice from other broker posters to confirm I would not breach the thread?

prudryden

Fairdo wrote:

Agree with payless (as always).
However, I do know about the Halifax state of play. I have been finding out for my old next door neighbour. I als osuggested he go in to the Branch and find out directly as well, but it is as a proevious poster has mentioned. They do have completely different products for Consent to Let and this is their right. I haven't seen it asked yet, but does the OP have a current Redemption charge if they leave the Halifax, because I would suggest it be taken on a Buy To Let Remortgage if it needs changing. Or it could be taken elsewhere on a residential basis to a mainstream lender who would not charge or load the rate on providing a consent to let further down the line. Most lenders would require the property to be lived in for 6 months on their mortgage first before consenting to let, but there is a lender out there who would consent straight after completion. I am not too sure on naming names here as I am a Mortgage Broker, but need advice from other broker posters to confirm I would not breach the thread?

I would think that you could mention names - better to list several alternatives in order that you can not be seen to be favouring one over the other.

Fairdo_2

Thanks prudryden. Only problem with this is that it is one lender that I know of. Never mind, if specifically asked I'll cross that bridge. Thanks for the feedback though.

kenshaz

Antj29 reminder that you require a signature if you are stating in your post that you are a broker ,as per the code of conduct for brokers.

regularsaver1

If you leave Halifax to take a mortgage elsewhere on commercial terms - as in a Buy to Let, or to another lender to get there permission to let the property

then yes - normal redemtion penalties would apply by moving lenders

One of HBOS's own lenders Birmingham Midshires and Bank of Scotland do BTL - but there would still be a redemption penalty as the Halifax mortgage would be repaid and moving to a different part of the group, so different lender.

you can ONLY apply for consent to lease on a face-to-face basis with a mortgage reviewer or adviser in branch, because you sign a form and so do they to grant the consent. This form then is sent to the business centre, who checks the mortgage product has been changed, and then applies to consent to lease (CTL) indicator ro the mortgage and adds a correspondence address accordingly

I have seen it the other way too, with having to change rates. Have seen some peoples rates decrease as a result of the change

Fairdo - are you saying that there is a lender out there, that will allow people to apply for residential mortgages and then ask to consent to let straight after completion, rather than do a buy to let mortgage? is this completely reliable

MarkyMarkD

Even if Fairdo is saying that, it's still fraudulent to apply for a mortgage on the basis that you intend to live in the property, when actually you are 100% intending to let it out as soon as you complete.

prudryden

MarkyMarkD wrote:

Even if Fairdo is saying that, it's still fraudulent to apply for a mortgage on the basis that you intend to live in the property, when actually you are 100% intending to let it out as soon as you complete.

That isn't the way I read Fairdo's post. I thought he said or implied that there is a lender who will allow a residential TYPE mortgage and then give consent to let after completion on the same terms as the original mortgage. In other words, as long as they know they are protected by an AST which allows the possessor of the property to give notice to the tenants, whether it be one month or two months notice, is acceptable to them for no extra penalty.

MarkyMarkD

It might be acceptable to them, after the event, but the fact remains that the original mortgage was obtained by deception.

prudryden

MarkyMarkD wrote:

It might be acceptable to them, after the event, but the fact remains that the original mortgage was obtained by deception.

If you say your intention is to live in the property and then change your mind soon after completion wouldn't be deception and certainly not fraudulent.:)

regularsaver1

Isn't this avoiding doing Buy to let - and therefore avoiding potential higher rates and loan to values -- hmmmm