Product Transfer + extend term?

kazire

I am with the halifax at the moment i have a residental mortage just on the SVR i am hoping to change to one of their BTL products and was wondering if when changing product can i increase the term of the mortgage ie currently 12 years and want to extend to 18/20 years to allow more flexability when renting house out ie lower payments when void periods

Thanks inadvance

kingstreet

You would have to ask about the term extention and it may have to be underwritten, particularly if you pass retirement during that time.

Presumably you intend to move to a consent to let product, one of the three year fixed rates. Halifax does not have BTL products, you would have to remortgage to BM Solutions for that. The CTL is limited to a three year period, to correspond with the fix.

kazire

Thank you kingstreet, I was not aware they Halifax didn't offer btl mortgages themselves
hmm I had consent to let and that has just ended so they have sent me the letter about contacting them if my property is still let out to call them to change on to the appropriate product, so does this mean I will have to show payslips and bank statements again if I went with this BM solutions or would they take the info from the Halifax? I am looking to extend the term to 20 Years this is well below my retirement age.

kingstreet

If you are "on a deal" Halifax will grant consent to let until the deal ends without affecting the product.

However, when the product ends and your mortgage reverts to SVR they then require you to move to one of their consent to let products, which is typically a three year fix at around 5.5% with a £999 fee. This is accompanied by a three year consent to let agreement.

If you want to remortgage to BMS or any other lender, the case will be underwritten and the usual checks done - valuation, rental income, status etc.

kazire

So I pay 995 to have the privlidge of being tied to them for 3 years what are the implications of paying the 1.5% penalty and they call it unauthorised?

Thrugelmir

kazire wrote: »

So I pay 995 to have the privlidge of being tied to them for 3 years what are the implications of paying the 1.5% penalty and they call it unauthorised?

Being in breach of terms and conditions, could result in the lender imposing an interest rate on you. Or amending the terms of the contract.

kingstreet

Implications;-

- they "call in" your loan. Unlikely, but possible

- you invalidate your landlord insurance, if it has a requirement to hold consent to let from your lender

- you leave your tenant in a precarious position if you ended up repossessed. See;-

https://forums.moneysavingexpert.com/discussion/1377883

kazire

sorry for all the questions, so if i go ahead with the consent to let product fixed for three years after the fix has ended will i need to apply for another Consent to let (+extra fee) or will it go to a Variable rate +/- a extra % as its consent to let ?

kingstreet

I suspect you will be required to accept a further consent to let product at the time, if you still require consent to let.