Can Halifax insist on changing our mortgage?

silvercar

opinions4u wrote: »

Always used to be temporary and with the right to withdraw permission at any time.

Which would be an unfair term. You can't give permission to rent out to and then say the permission can be withdrawn without notice. Tenancy law requires notice periods - something that the Halifax would be expected to know when they gave permission.

DVardysShadow

opinions4u wrote: »

Always used to be temporary and with the right to withdraw permission at any time.

I don't want this prejudged, I want Hughieboy's answer...

plane_boy2000

I have CTL from RBS and it has been in place for 8 years. There is no period specified in the letter, and they continue to charge me residential mortgage rates on it even though the know its let (they send all corespondence to my current address). I am in teh very lucky position that I am only paying 0.89% over the base rate, but that deal is about to end :-(

The important thing is to find the halifax CTL letter and see exactly what they specified. Based on my experience with HBOS I would not be surprised if they have not given a date, but you need to check that out.

If they did give a date then you dont really have any argument with them, but factor in that rents have increased over the last 3 years, so you should be able to recoup some of your extra payments if it comes to it

jamesd

The notice that Halifax is giving doesn't affect Hughieboy's obligation to comply with landlord tenant law. If Halifax added 10% then Hughieboy would be required to pay that for long enough to remortgage or the tenant to serve their notice. Similarly if Hughieboy was to sell the property Hughieboy would have to ensure that if the buyer wanted vacant possession the tenant was given enough legal notice.

plane_boy2000, that's really generous of them - they've been treating you very well! Shame it has to come to an end sometime.

Thrugelmir

plane_boy2000 wrote: »

I am in teh very lucky position that I am only paying 0.89% over the base rate, but that deal is about to end :-(

In a much changed financial landscape, RBS can change the terms to whatever they like (within reason).

dunstonh

I have CTL from RBS and it has been in place for 8 years. There is no period specified in the letter, and they continue to charge me residential mortgage rates on it even though the know its let (they send all corespondence to my current address). I am in teh very lucky position that I am only paying 0.89% over the base rate, but that deal is about to end :-(

However, RBS are not a shining light of financial responsibility. (nor are HBOS for that matter).

Hughieboy

Thanks for all the advice/replies.

Some a little black and white perhaps! But then I suppose legal and financial agreements are just that......

Not being too much of an expert on these matters I considered that expecting us to take out a whole new product incurring, frankly, more expense than we can sensibly cope with was a bit unfair. Same as a lot of us in self-employed land work is slack and bills keep rising. We can manage as we are and I was hoping to find a way to keep things as they are but if adding 1% to our repayments really is the deal of the century then I guess we'll go with that, our letter of consent does state that permission to let is subject to review on a three year cycle so I guess we'll just have to live with it and generate the extra £1200 a year............

kingstreet

A client who was having trouble selling phoned Halifax to ask about consent to let. He was on standard rate. They told him he would not be given permission unless he accepted a new higher fixed rate with a £1,000 fee and three year early redemption penalty. When he explained he really wanted to sell and certainly didn't want to be stuck for three years they said if he didn't go ahead with the new product they would write to him in three months asking him to sign a declaration to confirm he was not letting the property.

Fortunately he found a buyer and Halifax was not shortlisted as a potential lender for his new mortgage.

jamesd

Kingstreet, yes, that's what any lender is perfectly entitled to do once the mortgage product needed changes. Not very helpful reaction in that case.

Thrugelmir

Hughieboy wrote: »

Some a little black and white perhaps! But then I suppose legal and financial agreements are just that......

For good reason, in order to avoid misunderstanding.

If its an issue then consider whether selling the property would actually make financial sense. As its not just the annual outgoings to consider, but also longer term repair costs. Over time bathrooms and kitchens will need updating. Double glazing and boilers replacing. Ideally you should be putting funds aside from the rental income for these costs on a regular basis.