Halifax - Consent to Lease offer?

kingstreet

That would be how I'd do it.

You get your product transfer, by requesting it around a month before your fix ends.

Then, once that is done, you can safely request consent to let.

If you want to leave Halifax, you'll then need a Buy To Let product, from a specialist lender perhaps, and would need to meet their requirements over loan to value, rental income etc.

The Halifax product transfer, although limited by time, may be cheaper and less restrictive on criteria. Do not make any enquiries about CTL before you do the transfer though. If they note on your file you're thinking of letting, the product transfer rates go out the window.

clairenw

Excellent advice, thank you very much

ibz75

kingstreet wrote: »

That would be how I'd do it.

You get your product transfer, by requesting it around a month before your fix ends.

Then, once that is done, you can safely request consent to let.

If you want to leave Halifax, you'll then need a Buy To Let product, from a specialist lender perhaps, and would need to meet their requirements over loan to value, rental income etc.

The Halifax product transfer, although limited by time, may be cheaper and less restrictive on criteria. Do not make any enquiries about CTL before you do the transfer though. If they note on your file you're thinking of letting, the product transfer rates go out the window.

Kingstreet,

Will this work if you are already on SVR and then switch to a fixed rate?

I am planning on moving home to care for my elderly father. This will probably be for 12-18 months until I can organise a permenant solution.

I am currently on the HSVR (3.99%) and only have 7% equity. I have been offered a 5yr fix at 4.49%. I don't want to let without permission, even though its for 1-2 yrs max. But I also want to avoid paying more for the privalage! Due to my LTV I won't have funds to transfer to a BTL product.

Will I have to pay any penalties for fixing now, and asking for CTL in April? My main concern would be being forced to pay a redemption (5%) before being transferred to a CTL product - does this happen often?

Thanks.

clairenw

kingstreet wrote: »

That would be how I'd do it.

You get your product transfer, by requesting it around a month before your fix ends.

Then, once that is done, you can safely request consent to let.

If you want to leave Halifax, you'll then need a Buy To Let product, from a specialist lender perhaps, and would need to meet their requirements over loan to value, rental income etc.

The Halifax product transfer, although limited by time, may be cheaper and less restrictive on criteria. Do not make any enquiries about CTL before you do the transfer though. If they note on your file you're thinking of letting, the product transfer rates go out the window.

Another question: So if I get a mortgage on a 2nd property (to live in) within the next 12 months, and then in a year I approach the Halifax again to transfer to a new product on the old house, won't the Halifax be concerned that I have two mortgages at that point, and won't they twig that I really want a buy to let mortgage?

It also means, if I find a 2nd property within the next 12 months, I'm stuck with the old house which I can't let out...

Any advice?

kingstreet

Product transfers involve no further checks, other than a valuation of the subject property. This can be an indexed desktop valuation, drive-by or internal inspection. The latter two at your request and expense.

kingstreet

ibz75 wrote: »

Kingstreet,

Will this work if you are already on SVR and then switch to a fixed rate?

I am planning on moving home to care for my elderly father. This will probably be for 12-18 months until I can organise a permenant solution.

I am currently on the HSVR (3.99%) and only have 7% equity. I have been offered a 5yr fix at 4.49%. I don't want to let without permission, even though its for 1-2 yrs max. But I also want to avoid paying more for the privalage! Due to my LTV I won't have funds to transfer to a BTL product.

Will I have to pay any penalties for fixing now, and asking for CTL in April? My main concern would be being forced to pay a redemption (5%) before being transferred to a CTL product - does this happen often?

Thanks.

You request a product transfer while on HVR/SVR.

You get the new product.

Later, you then request consent to let.

Consent to let will be granted and the current rate will be allowed to expire before you are required to move to the formal CTL products mentioned.

ibz75

Hi Kingstreet,

Can you offer any advice on my situation?

Thanks.

Sorry, just missed your post.

ibz75

kingstreet wrote: »

You request a product transfer while on HVR/SVR.

You get the new product.

Later, you then request consent to let.

Consent to let will be granted and the current rate will be allowed to expire before you are required to move to the formal CTL products mentioned.

Thank You - From my understanding, CTL is for a maximum of 3 years. If I had a fixed for 5yrs, would this not become an issue for granting CTL? As I mentioned before, I would not want to be forced to pay a redemption on my fixed product, then be moved to a CTL product. If I had been offered a 3yr fix, I would have taken that, or am I being too paranoid???

kingstreet

Consent is granted for three years.

When the consent is reviewed, it can be continued, or withdrawn at the lender's discretion. The product has nothing to do with it. The decision won't be based on how long you have left on a particular rate.

If you already had a five year fix and requested consent to let, it's possible you could be left with a longer fix than you have consent.

If you are concerned at the possibility of the rate overhanging the consent, go for a product transfer which is the same length, or shorter. This would be a prudent route, to avoid being left stranded "when the tide goes out," so to speak.

You may be able to delay the inevitable for a year or two, but ultimately if you are letting a property on a residential mortgage at some point, you will have to accept the premium rate for having a non-owner occupied property.

There are three year product transfer rates showing on the Halifax Intermediary site, so I presume there are also three year direct options too...

kingstreet

Bumping thread for someone unable to open a new thread.