We've been renting my wife's old house out using Halifax's "consent to let" on our residential mortgage for the past 3 years.

Halifax have just written to us withdrawing that consent unless we swap to one of their "buy to let" deals.

The result of which will increase the monthly payments by £700 Effectively making it not a viable renting solution... but we do not want to sell either...

They will not budge on letting us transfer to the standard variable rate and keep the consent...

Just a heads up for anyone else using this facility on their mortgage, and are coming to the 3 year mark.

 

sorry, forgot to add

Because the property has fallen in value since the depression, the house also has a greater LTV % than 75%...and we are expected to make up that difference also.

so another £3k

 

So what happens if you do nothing then?

 

breach of your terms and conditions

they can in theory re-possess

 

Blimey, that's harsh, how about a remortgage then.

 

Halifax do it again, biggest set of cvnts around, hate them, with a passion.

 

Been looking around, but all the other buy to let deals on the market also insist on an LTV of 75%.. along with an additional 2.7% admin fee... so basically the same as Halifax are holding us to ransom..

 

Do you mind me asking what the before and (proposed) after rates are?

 

Why remortgage as a BTL, I'm assuming this is at present a second home mortgage. Apply for another one of them with a friendlier lender then gain consent to let a month after....

A&L currently charge £95 p/a for one of our "second homes"

 

We were on something like a -1.4% tracker... that has been replaced with a 6.4% fixed I think

 

Cheers, I'll have a look at that then!

On their website the A&L mortgages only seam available to existing customers or 1st time buyers?

Or am I reading it wrong.

 

Halifax are a greedy shower you and I own 80% of them the TAXPAYER ! the sooner everyone gets away from them the better,they are a f--king joke

 

Do as cookstar says, I hate the markup the BTL mortgages tie you to, never had one despite renting the property out for 3 years

 

Just spoken to C&G, and to set up a residential mortgage and then get a consent to lease on it, they wold require a minimum 6 months gap.

I know what you're both saying and it's a great idea, but if the mortgage lenders want to play hard ball, they could say you've breached your terms and conditions and then it gets really messy.

 

That's fine, but due to a change in personal circumstances, you have no choice to let the property out blah blah etc.

I do this quite a bit.

 

Good warning to avoid Halifax for a start!

Les

 

You are confusing Halifax with RBS. HBOS are less than 50% "owned" by the government.

Geezer

 

The 'depression' and our MASSIVE investment in them was partly caused by companies like the Halifax doing BTL on a free for all nature.

You can't have it both ways.

It is a difficult for the OP as the real targets are people with multiple loans - but the reality is that BTL is a business and 75% LTV is the maximum you will get - and in a falling market, margin calls will be the norm.

 

I had the same problem with the Halifax!! had to plumb 5K in to get the LTV rate to 75%. but this only increased my MR by £150, we did have a look around at other options but stayed with HBOS in the end, however Abbey were the best alternative so give them a call and see what they can do for you.