Halifax Consent to Lease

G_Force

I am looking for some help and am hoping I am in the right place.

My current situation is that I require to move from my 1 bed flat with my wife as we are expecting our first child. We bought the flat 3 years ago and have just moved on to the SVR. I have done some research and am aware of the CTL mortgages that Halifax would force me on if I were to request consent at the moment. From what I understand, I would be able to request a product transfer at the moment and then in a few months request consent and would be allowed to stay on my current deal. Due to my current LTV the only option would be a 5yr fix at 4.49pc. At that rate my mortgage payments would be the same as the rent I would receive.

My questions are

- what are the chances of Halifax forcing me on to their CTL mortgages anyway leaving me to pay an early redemption fee on the 5yr fix

- would consent be granted until the 5yr deal ran out

If anyone has any experience of this situation or any information that could help me iIwould greatly appreciate it .

Thanks

kingstreet

They would not force you onto the CTL fix if you were already in a fixed product.

CTL will only be granted for 3 years. We cannot say that the CTL would definitely be renewed for years 4 and 5.

G_Force

Thanks kingstreet for your reply. Is it correct that I would have to wait 6 months before applying for consent.

Do you think there would be any problem in gaining consent in my situation.

Thanks

Thrugelmir

G_Force wrote: »

At that rate my mortgage payments would be the same as the rent I would receive.

Only the interest element of your mortgage repayments is tax deductible.

Remember that you are still responsible for the upkeep of the property. All wear and tear is at your cost. So the rental income should exceed all the outgoings. Otherwise you will be subsidising the venture.

Also there's no guarantee of receiving rental income every month.

Good advice can be found on the house buying board.

kingstreet

G_Force wrote: »

Thanks kingstreet for your reply. Is it correct that I would have to wait 6 months before applying for consent.

Do you think there would be any problem in gaining consent in my situation.

Thanks

I don't know of any minimum period. Our Halifax BDM suggested this route to avoid the higher cost CTL products and did not mention any minimum.

I'm sorry. Obtaining consent to let is lender/borrower territory and I have no idea what the lender might want from you, or ask you, so I'm not in a position to say what might happen when you request it.

Simon_gloster

Depends on the LTV whether permanent consent is granted. Although a 5 yr is what your after, 3 yrs is normally the max they will allow as ita a temporary arrangement otherwise do a BTL.

I have seen these situations end in tears many times by people trying to outdo lenders. They are wise to this and have systems in place to check.

Goldiegirl

Simon_gloster wrote: »

Depends on the LTV whether permanent consent is granted. Although a 5 yr is what your after, 3 yrs is normally the max they will allow as ita a temporary arrangement otherwise do a BTL.

I have seen these situations end in tears many times by people trying to outdo lenders. They are wise to this and have systems in place to check.

I agree, the whole point of a CTL is that is a temporary arrangement, e,g. If someone in the forces is posted abroad.

It's not really meant for someone to let the property because they don't want to sell it and hope to make money on the rental income.

If the latter is the reason, you should really be going on to a BTL interest rate.

Simon_gloster

Also to get a main residential rate when let out is detriment to those that do I properly.

Either way, when you change correspondence address and buildings insurance, certain things are triggered to monitor your account.

Rate loading is common and legal and when loaded is higher than CTL rates.