Halifax increasing mortgage by 0.5% for consent to let

Zootsuit

Hi All

Last October I decided to let my flat when I moved in with my partner. Halifax agreed to a consent to let but as it's only valid for your current mortgage period and mine was due for renewal in April this year, I had to remortgage at considerable cost. (£1700 Fee + jump from 3.7 to 5.09% for a 2 year fixed) 

They have now sent a letter saying that to continue with consent to let they will add 0.5% to the mortgage. This appears to be a blanket rule on their website, however as I remortgaged to a fixed term , this feels unfair. Can they really do this before my current deal finishes ? 

Thanks 

Caz3121

did you remortgage as a residential mortgage or a by to let? there is an additional fee on a residential mortgage for consent to let. Did you look at buy to let products to compare?

kingstreet

FWIW you wouldn't get a BTL two year fix as low as 5.59% with a fee as low as £1,700.

Zootsuit

I remortgaged as residential, hence the buy to let. The fee was to get out of my then current deal early. Buy to let mortgage rates were much higher and I wasn't sure what I'd do with the property long term

I appreciate this isn't the worst rate out there, it's more the principle that they are increasing the rate when I'm in a fixed agreement period. I'm not adding the consent to let, it existed from the time I took out the new rate 

Zootsuit

*hence the consent to let! 

kingstreet

In return for a variation in the terms applying to your contract, a lender can demand pretty much what it wants. Allowing you to do a PT first, then surprising you with this is a bit off, but I suspect it's in the rules somewhere. When I think about it, Halifax didn't previously allow a PT during consent to let and SVR was the only option other than remortgaging elsewhere.

JMA74

kingstreet said:

In return for a variation in the terms applying to your contract, a lender can demand pretty much what it wants. Allowing you to do a PT first, then surprising you with this is a bit off, but I suspect it's in the rules somewhere. When I think about it, Halifax didn't previously allow a PT during consent to let and SVR was the only option other than remortgaging elsewhere.

They still dont it seems...or at least not through brokers.  Just tried to run a PT through for a client stuck on SVR with consent to let since i read this post and it still says ineligible.  

ader42

Think yourself lucky really, in this day and age I thought lenders insisted on BTL mortgages.