Mortgage Providers Consent to Let

MarkyMarkD

prudryden wrote:

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.:)

That's why I said it would be fraudulent if you LIED that it was your intention to live in the property, and then told the lender that you'd changed your mind immediately afterwards. Changing your mind isn't fraudulent, but obtaining money by deception is criminal.

delb0y

Hi folks, does anyone know what northernrock would charge if I wanted to let out my property

nrsql

I've done this twice with different providers.
I said I was working abroad for a year then returning and I wanted to rent out the property while I was away.
Both times they said it was ok but might want to change the mortgage if it was for longer. Both said on the phone it would probably be ok but I would need to write for a formal decision. Both times I did return.

Try telling them it is for a year and that you are planning to return to the house after that - not a lie really because you never know what is going to happen.
I suspect it is the 2 years that is causing the problem.

delb0y

Thanks nrsql

regularsaver1

nrsql - the procedure is still the same whether it be 6 months, a year - up to 3 years max

talton

prudryden wrote: »

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.

Hello Fairdo.

If this lender still consents to let after completion, it may well save my life!!! Please let me know the name of the lender.

itgirlinuk

I know this is an old post, but...

I have just contacted Halifax regarding my consent to Let. They won't do this face-to-face and it has to be over the phone.

They have informed me that the rate will go up by 5% when compare to my existing mortgage deal!!!:mad:

I tried telling them that I am aiming to pay off the mortgage in a year's time and wondered if there was any leeway. But NO!

People are telling me that I need to tell the mortgage provider to get Landlord insurance, as that will be invalidated if I lied about the mortgage. Which is why I told them! Now, I have to pay so much extra!

Is there any way around this? Will it be cheaper if I took it another bank where they won't charge more for letting it out? Is that even possible?

kingstreet

itgirlinuk wrote: »

I know this is an old post, but...

I have just contacted Halifax regarding my consent to Let. They won't do this face-to-face and it has to be over the phone.

They have informed me that the rate will go up by 5% when compare to my existing mortgage deal!!!:mad:

I tried telling them that I am aiming to pay off the mortgage in a year's time and wondered if there was any leeway. But NO!

People are telling me that I need to tell the mortgage provider to get Landlord insurance, as that will be invalidated if I lied about the mortgage. Which is why I told them! Now, I have to pay so much extra!

Is there any way around this? Will it be cheaper if I took it another bank where they won't charge more for letting it out? Is that even possible?

Have a look at the deals available to remortgage onto a BTL product and compare them with what Halifax is offering.

One of my clients wanted a short-term consent so he could move house. He was on SVR with Halifax. Not only did they insist he took a new deal, he also had to pay £600 in fees and accept another early repayment penalty period of three years. They also told him if he didn't do it, they'd insist he wrote to them confirming he wasn't going to let the property within three months.

Fortunately, we found a buyer for the property. Needless to say Halifax will not be on the list of lenders next time we're looking for a new mortgage.

h34v3ns3nt

Well how about this then, im looking to move into my fiance's property and have already recently enquired with my current lender (Halifax) about Consent to Lease. Trying to do everything above board.

I have 26 years remaining on my term (theoretically)

I havent been able to find any BTL products with a sufficiently high LTV to match my current LTV of roughly 80-85% So thats out of the question. As is switching to another lender and immediately applying for consent to lease, as most lenders state you have to of lived there for 6 months at least before applying.

Im literally (31st of this month) about to end a 3yr fixed rate residential mortgage at 5.89% and Halifax insist I take out a new 'Consent to Lease' product before I can let the property.

2 options available to me:
A 3yr tracker at BOEBR + 5.89% with a £599 arrangement fee or
A 3yr fixed at 5.69% with a £1499 arrangement fee

The tracker doesnt have penalties for repaying early but the fixed does.
Due to costs Im going for the fixed.

What is frustrating though is the £1499 arrangement fee. Its an outright con.

Arrangement fees are to secure a headline discount rate, the irony here is the SVR is currently 3.99% with Halifax!

But after discussions with friends etc, nothing is better than getting the full return in rental income from your property and with all the fees and tax I just break even from £625/month rental. So im a full months mortgage payment better off per month. Leaving me the freedom to overpay my mortgage a little should I wish.

I even thought about switching to a 1.99% tracker with another lender and riding the storm for a bit, letting a mate live in the house for practically nowt. But as others point out in this thread, its not above board and I wouldnt sleep at night, not to mention even with that rate I would still have to pay off the capital side of the mortgage, so would still be paying roughly £264/month.

If anyone can think of any alternatives before I sign the consent and new mortgage paperwork I would be chuffed.

New tenants move in end of the month.

Like I say, its mainly the arrangement fee that !!!!es me off.

Thrugelmir

Sell the property if there's insufficient return on holding it as an investment.

Human nature dictates that's its hard to let go of a poorly performing one.