To switch or not to switch with Halifax?

ohnonono

Hi everyone and hope you had a good Xmas!

Does anybody know the application process for switching to a fixed rate Halifax mortgage from an existing SVR?

I need to know what questions they may ask, documents they may require etc as I have been renting out my property without their permission and need to know if I am at risk of them finding out if I switch to one of their fixed rates.

Apparently they told me they can just do it over the phone and it takes 20 mins without a credit check but I need to ensure I am prepared for their questions.

Thank you in advance for your help

ethank

If you do not tell them that the property is let then you are committing mortgage fraud.

ohnonono

Thank you I completely appreciate that but my situation is slightly complicated and I am just trying to avoid bankruptcy & repossession which I believe in turn helps the economy as at least I am attempting to pay my mortgage and debts whilst my situation improves instead of just walking away.

In short I cannot sell the property as there is a legal case with the builders that could lead to a £200k bill and I cannot live in it as there are no jobs in the area so I am working in a different city.

If anybody has any experience of switching onto a fixed rate with their mortgage provider / Halifax and knows whether my finances will be investigated etc that would be really helpful

Thank you in advance.

Thrugelmir

Switching product is normally a straightforward affair. As requires no underwriting.

To avoid digging a bigger hole than you are already in. Maybe simpler to remain on the SVR. Until you are in a position to sell the property. As the inherent danger is that the matter will come to light at some point.

John424

Halifax won't probe, you just ring them up, discuss the valuation to see if it's fair and they then offer you a choice of fixes, all done in ten minutes, well it was for me. Only word of warning is that Halifax valuations, imo, are too low so if their valuation keeps you at a higher LTV then question their valuation and how to revalue their valuation.

SuzieSue

Once you have switched to a fixed rate they are much more likely to give to consent to let.

Goldiegirl

To do what is known as a product transfer, just involves a simple phone call or visit to the branch.

However, by letting the property without their consent you are in breach of your mortgage conditions. Technically speaking, if a person is in breach of their mortgage conditions, the lender can apply to repossess the property.

You say that you want to avoid repossession , so what you should be doing is applying for their consent - they probably have an interest rate product you can switch to, which is for Consent to Lease mortgages.

Have you changed your correspondence address? Because if any correspondence is returned to them with the reply 'gone away', that'll tip them off that you are not living at the property, and they could easily pay a visit to see what's going on.

Do the right thing, ask for permission to let the property and everything is above board and legal - then you can have peace of mind

ohnonono

thank you so much for all of your responses. I will hopefully be in a better position to request the consent to lease this year, when i first asked they required a deposit and much higher interest rate due to the amount of negative equity the property had. Hopefully this has been reduced over the last 3 years so i can do everything above board and sleep soundly at night

have a happy new year everyone and may 2014 bring you all your wishes