Halifax - Consent to Lease offer?

qwertyqwerty

All

Requested a consent to lease deal from Halifax starting from April, they gave me a deal of 6.4% and product fee of £599. I called today asking if I could delay this as i wasnt sure when I will be moving out, they said i could delay it till June and the rate would be 6.1% with a product fee of £1499. i am not sure when I will be moving out so unsure whether I should accept the first offer startig in april or just cancel the application and apply again with the risk being an new offer could be a lot worse (if the June offfer is anything to go by) Any suggestions?

Thanks,

Dave_Ham

Depending upon your loan to value you could almost get a better deal on the open market than there latest offer.

The entire Lloyds Banking Group are cracking down on this sort of consent to let agreements and therefore price hikes are almost guaranteed.

Depending upon your current deal and your circumstances, I would cancel the application and see what the future holds. If you went onto the 6.1% deal 3 months later than expected, you will save the difference in product fees I would think....

silvercar

That sounds like a transfer to a BTL product, rather than consent to lease on an existing mortgage. I think you need to check that they understand what you are requesting.

kingstreet

I wish you'd posted here first.

If you take a product transfer first, you can get a cheaper two year fee-free fix or something similar, as they don't make you change if you are already on a "deal."

The OP is right, Halifax consent to let products are 3yr fix or 3yr tracker products with ERPs and a fee. Not exactly what the accidental landlord is likely to want, or need.

qwertyqwerty

Thanks for the replies, I should have made it clear I am not on a deal but on the SVR rate. This was the only offer they could make me, either a 3yr fixed or 3 yr tracker.

qwertyqwerty

kingstreet - not too sure what you mean by this?

If you take a product transfer first, you can get a cheaper two year fee-free fix or something similar, as they don't make you change if you are already on a "deal."

money_maker_3

If you are in a fixed rate and then decide to go on consent to lease, you have to pay the ERCs unless the new rate ties you in for longer than what is left on the existing fixed or tracker. you cannot have consent to lease on a residential fixed or tracker rate.

kingstreet

money_maker wrote: »

If you are in a fixed rate and then decide to go on consent to lease, you have to pay the ERCs unless the new rate ties you in for longer than what is left on the existing fixed or tracker. you cannot have consent to lease on a residential fixed or tracker rate.

No way of putting this differently. That's incorrect.

If you are on SVR with Halifax and request a consent to let, they will insist on you taking one of the three year products mentioned, or they will assume you are letting without consent and charge you a 1.5% penalty.

To avoid this, prior to requesting consent, the borrower chooses a new residential product from the "product transfer" range for their loan to value. In this way, a shorter, cheaper, and/or fee-free product can be selected.

If the borrower then requests consent to let, no change is required during the currency of the product recently selected. There will be no requirement to change, or of the additional rate, until after the product expires.

Similarly, anyone approaching Halifax for consent to let who is currently in a fix or other product will not be asked to switch until after the product ends.

Dave_Ham

kingstreet wrote: »

No way of putting this differently. That's incorrect.

If you are on SVR with Halifax and request a consent to let, they will insist on you taking one of the three year products mentioned, or they will assume you are letting without consent and charge you a 1.5% penalty.

To avoid this, prior to requesting consent, the borrower chooses a new residential product from the "product transfer" range for their loan to value. In this way, a shorter, cheaper, and/or fee-free product can be selected.

If the borrower then requests consent to let, no change is required during the currency of the product recently selected. There will be no requirement to change, or of the additional rate, until after the product expires.

Similarly, anyone approaching Halifax for consent to let who is currently in a fix or other product will not be asked to switch until after the product ends.

Really useful - had not seen this yet so learn something every day.... Just playing devils advocate, what if they tied in for 5 years?

kingstreet

Dave_Ham wrote: »

Really useful - had not seen this yet so learn something every day.... Just playing devils advocate, what if they tied in for 5 years?

Halifax said they'll simply accept whatever is left on the offer. Have a word with your BDM. That's where I got this from.

They were suggesting we generate income from non-client product transfers and this was one of the ways we could do it.

qwertyqwerty

Si if I read this right, If i switched from my SVR to anoher deal from thier range, i could then request consent to let and would still pay the interest rate of my new product until it expires, is this 100% guaranteed to happen?

I havent sent my papers back for my consent to let application, can i lave this and switch over to a new product, and then request permission again when i need it?