Problems with Halifax

gravitas

Hi.

Around 6 months ago my partner and I successfully applied for a 'let to buy' Mortgage with Natwest, the intention was that my partner would let her property out (which she has) and I would let my property out once work on our new home was completed.

We didn't really want to let our properties out but we bought at the peak and that's the situation we find ourselves in as we have new jobs 50 miles away and we wanted to move a bit closer to cut down on commute costs.

Anyway we have now moved into our new home over the weekend and I have decided that I don't want to let my home out and would prefer to sell it as I think I can just about get out even.

I have called Halifax, fortunately I gave them them scenario before I completed any DPA checks, and the person there was very aggressive, essentially I explained the situation and just asked if I could put the mortgage on interest only whilst it sold to help me with my outgoings.

The person on the other end of the phone said I was committing mortgage fraud by having two residential mortgages and they needed to change the mortgage to a buy to let and me put some more money into it and pay a higher interest rate 'immediately'

I can understand the point around two residential mortgages but Natwest were aware of this and I'm not planning on letting the property out so don't agree with them on the buy to let point, has anyone had this situation happen to them? It seems extremely heavy handed to me all I wanted to do was reduce my outgoings but they seem to want it both ways i.e wont give me a residential rate as I don''t live there but want to give me a buy to let rate if though I'm not renting it out!

Any advice would be greatly appreciated!

Regards
Graeme

kingstreet

You can have as many residential mortgages as you can afford, so the Halifax drone you spoke to is a clown!

Are you mistaking the "let to buy" thing here? That would be a new mortgage on the existing property to repay the old one, raising extra money for the deposit for the purchase, with a mortgage with another lender to provide the difference.

It sounds like your existing mortgage/property is Halifax and the new mortgage for the purchase is NatWest?

aylesburygirl

Hi

Do you mean you have got consent to let from Halifax? Halifax don't do 'let to buy' mortgages.

Do Halifax have the mortgage on your old house and Natwest on the new property?

gravitas

Hi

Thanks for commenting! Your last paragraph is correct.

No it was strange one as I'd not heard of the concept before, Natwest offered us the 'let to buy' mortgage as one / both of our existing properties were going to be letted out thereby meaning they were taking care of themselves so to speak, this is the mortgage we have on the new home we have just moved into, they were also aware that I was considering selling mine potentially and were fine with that.

I don't really know what my next step should be, I can afford to cover the mortgage whilst it sells but it would really help me out if I could go interest only as it would be about £300 a month.

I have genuinely had such a bad experience with Halifax from start to finish I cant see myself using them again for anything!

gravitas

Hi

I don't have consent to let from Halifax as I don't want to let it out I just want to put that onto interest only whilst it sells.

My mortgage with Natwest on my new home is 'Let to buy' because we are renting my partners property out and were potentially going to rent mine.

amnblog

They are not going to let you put it on interest only while it sells.

That is not the contract you have with them if you set the mortgage up as a repayment mortgage.

Putting it on interest only suggests to them you cannot afford the current repayments.

if you are not letting the property and just selling it you do not need to bother Halifax again - just get it sold and pay them off.

If you do intend to let the property for a period of time you need to inform Halifax and they will generally let you do this on the current product (but this does not mean you can change the repayment type to interest only).

amnblog

gravitas wrote: »

'Let to buy'

This a phrase on which even the Lenders cannot agree on a definition.

Some use it to define a mortgage on the property to be let, some on the property to be lived in, some not at all.

Some lenders would allow you to mortgage your new property with them unless you are already letting the existing one.

It is a minefield - and best approached only with a broker.

Thrugelmir

The Halifax is not part of the NatWest. Did you inform the Halifax of your intentions prior to purchasing the new property?