Consent to Let expiry (HSBC) - Early Repayment Fee unavoidable?

Thrugelmir

Xanthippus wrote: »

However, based on comments I have read, banks can choose to look upon a change of circumstances in ways that needn't lead to applying an Early Repayment penalty, even though they would have been entirely justified.

Lenders are in business to make money. They are not charities. You've made money from letting the property. So why should the bank lose out. CTL is granted on a temporary basis. However appears you never had an intention of moving back. Precisely the reason lenders such as HSBC operate the rules they do. You won't be the first person to have attempted a similar stunt.

Xanthippus

Mossfarr, Royal Bank of Scotland certainly sound relaxed about it all. Waiting until the end of the initial period sounds like a solid gesture of goodwill on their part. I'm glad it hasn't involved any complications for you.....I hope mine goes the same way!

Dimbo61, at the moment I have the 12 month permission and I was simply told this will be reviewed again in Dec. As I do not really know what to expect upon this review, I turned to google for previous examples of people coming to the end of their Consent to Let periods. It seemed like most people got put onto BTL products, but maybe their initial terms were shorter than mine. If HSBC do just leave the status quo in place, I'd be perfectly happy. But, just in case, I won't assume that just yet.

Thrugel, "Stunt" is a bit harsh, I can assure you this wasn't some sort of master plan. Life rather unexpectedly offered me a new home (when a loving partner came into my life a year after my move). I'm all for continuing to pay my original fees, or of course switching to a higher BTL rate to represent the change in circumstances, but forcing an Early Repayment Charge on top of that would seem like the bank rewarding themselves for what is ultimately now my improved ability to repay.

Thank you all for your responses, the good, the bad and the indifferent.

davidmcn

Xanthippus wrote: »

Why? Customer retention (savings and current accounts) and the expectation of future mortgage custom might well factor.

They're not likely to pay you several thousand pounds in return for vague promises that you won't shift your other accounts as soon as interest rates change, or that you'll look upon them kindly in the future.

If you are simultaneously taking out another mortgage with them, then maybe they will be more interested in doing a deal.