Halifax - Nasty Letter To landlords - Beware!

dk8095

Halifax have sent me a nasty letter claiming if i do not take up at least one of their 2 new landlord mortgages then action will be taken under their consent to lease policy.e.g extra 1% etc etc.
I feel something fishy is going on here as both of these products require large upfront arrangement fees, the fee for the Fixed rate mortgage is £999 and for the tracker its £599, both will result in an immediate increase in monthly payments as well. My point here is; they are only offering 2 products that require large upfront fees and no warning or letter about the change in conditions was sent previously - can they do this?? Any advice as this really is taking the you know what! - Andy

scottn

When does your consent to lease expire?

magpiecottage

Is the existing contract a Buy to Let mortgage?

dimbo61

Let me guess you have been renting out your property for the last 2/3 years under consent to let. It's now come as a surprise that the period is up. So you have a choice ! Sell up and pay off the mortgage or pay either 1% more on your mortgage rate or take one of the 2 products or remortgage onto a BTL mortgage.

opinions4u

If you want to be a landlord you do it on their terms.

If you don't want to do it on their terms you need to find somebody else to remortgage to.

holly_hobby

There have been a number or recent threads on the same subject, one poster had originally been agreed a 3 yr consent to let by Halifax - with Halifax writing to them some 11 yrs later advising of the changes to be made, which mirror the letter recd by yourself.

The 2nd poster, again has been given 3 yrs, and had been contacted by Halifax over 8 yrs later, again same letter as recd by yourself was issued to the poster.

So I would also guess that you may have been out of your CTL original agreement for a little while.

I am afraid that the response to your thread, is the same as that I have already given - that the basic line is your mortgage was originally on residential terms, which at some point you sought to let your property (effectively changing it to a semi-commerical borrowing), and obtained a consent to let from Halifax (which would have been for a noted temporary period).

Halifax are well within their contratual rights to move your borrowings to a BTL (or semi commercial) basis, with the fees and rates being quoted consistent with this type of borrowing.

The only advice that can be given is that if you are unhappy with the products being offered by Halifax, that you seek to move your mortgage to an alternative provider - a Buy To Let re-mortgage will need to be sought (there are currently some fee free BTL remortgage deals about), and I would advise seeking the services of a whole of market mortgage broker to assist in your sourcing of a suitable lender and more attractive product than those offered to you by your current lender.

I'm sorry if this isn't what you wanted to hear .. but hope it helps all the same !

Holly

dk8095

Many thanks Holly hobby and others for your replies - most helpful.
I feel if your BTL mortgage is only small then accepting the 1% penalty on top of the current variable rate may prove more financially viable than paying an upfront fee for one of the 2 options they give. For example; Halifax offer one product at £999 & one at £599 and of course a new % rate that would increase your current monthly payment. So some may want to consider taking the 1% penalty as an option. T & C's permittingof course.
Andy