Halifax - Consent to Lease offer?

kingstreet

I said "I wish you'd posted here first" because once you've logged your request, they won't allow a product transfer to anything other than the CTL products you've been offered.

You could give them a ring and try it. If you don't ask...

I'm sorry this may not help you, but every Halifax CTL thread I see I post this in the hope of saving someone about 2% a year.

bobby_davro_2

Wow, this is the first i've heard of this.
Seems this would address many concerns of people trying to rent their property with the piece of mind of full permission from the lender, whilst not paying heavy penalties in doing so.
Has anyone else on the board has success with this approach?
@Kingstreet , If the mortgage is interest only, will they have to change to capital payment or can still fix for 2 years on the interest only?

Thanks

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.

Thrugelmir

bobby_davro wrote: »

If the mortgage is interest only, will they have to change to capital payment or can still fix for 2 years on the interest only?

There's a clamp down on interest only mortgages so once you make contact they'll be on your case.

Dave_Ham

Incorrect

Actually if you are on interest only with the Halifax, they just get you to sign a declaration that you understand the implications of interest only etc. etc.

jee

What's your LTV ratio? I asked Halifax about CTL but said I'd rather remortgage to BTL with another lender when they gave me the options.

bobby_davro_2

jee wrote: »

What's your LTV ratio? I asked Halifax about CTL but said I'd rather remortgage to BTL with another lender when they gave me the options.

Not sure if this is aimed at me or the OP??
If me, then..... 5 years ago, put down 10% deposit for Interest only mortgage, so guessing current LTV is around 95%

Would this make a difference?
Anyone else had experience with trying this with Halifax?

Sorry if this is hijacking the original thread

Simon_gloster

jee wrote: »

What's your LTV ratio? I asked Halifax about CTL but said I'd rather remortgage to BTL with another lender when they gave me the options.

Maybe they are looking at it from the point of view as having your money back from redemption, and then lending it to main residential applicants. At the end of the day CTL is higher risk and something lenders dont want to do, but have to to keep us all happy eg higher rates and fees.

Lloyds banking group (Halifax BOS, TMB, BM C&G ) are s%it hot on CTL these days and will make you pay with an intent to let.


Like it or not, they are partially state owned, and have to recoup funding anyway they can across all brands. I'm in favour of this, renting out on eg 1.5% tracker on a main res rate is wrong. Its not the lenders faulr someones circumstances changes. I'll admit Halifax will let people see out their incentive periods, bu if your on SVR quite rightly you should he put on 5-6% rates.

bobby_davro_2

Simon_gloster wrote: »

if your on SVR quite rightly you should he put on 5-6% rates.

Yes, but from the advice above, it seems if you move to a 2 year fixed rate product of 4.5%, and then 2 months later ask for CTL, then you stay on the same rate!
This is great news.
Does anyone know if Halifax will grant ALL CTL applications, or do you have to prove why you need it? i.e had to move location with work
Thanks

baxxy

bobby_davro wrote: »

Yif you move to a 2 year fixed rate product of 4.5%, and then 2 months later ask for CTL, then you stay on the same rate!
This is great news.

This is the first time i've heard this? I've always thought Halifax are the least accommodating - Especially with ow LTV
I'd wait to see if the OP or anyone else had luck with this before you ask Halifax for CTL... and then get refused

rosarmitage

in July 2009 we changed our mortgage with The Halifax to a consent to let fixed rate mortgage for 3 years. They charged us £999 to do this.

Initially we were moving abroad for a short time but our plans have now changed and we are in the process of applying for a Green Card. We currently have tenants in the property and their lease expires in April 2013, at which point we will try and sell the house.

As our current 'consent to lease' is due to expire at the end of this month, Halifax have written to us and said that we have to gain a new consent and take out a new product with them. The fee for doing this (assuming they grant us the consent to lease) will be £1499. The rate that they would offer us is 5.9%. We are a little surprised at this as no where in the original product transfer offer from the Halifax did it say that we would need to gain a new consent to lease, it just said that at the end of the three year fixed rate the remainder of the mortgage would be at their standard variable rate!

Although we want to sell the house, there is obviously no guarantee that this would actually happen and so we need to be on a product that allows us to keep our options open. We can't be tied into anything which would mean early redemption penalties if we do sell, but equally we may need to re-rent the property if the market doesn't pick up and we can't sell next spring.

Are we better to continue to request and extension on the consent to lease with the Halifax or to convert to another lender on a buy to let. We have approximately 35% equity in the house.

It seems like a very strange situation where by the Halifax will only give you a consent to lease if you are locked into a deal with them over a period of time which gives you no opportunity to sell your house!