Q: Hi,
Im to travel to 2007 and is planning to rent out my flat.
I “just had a meeting with my mortgage company (Halifax) and they have advised that they will have to move my mortgage to fixed rate Im currently on a mortgage to buy ~ ￡ 100 per month Let expensive!
On top of this they insist that they will cost me a new product arrangement fee of ￡ 499 to do this – I could not believe ￡ 499 for a little bit more expensive paperwork.
With mortgage payment, plus the rental agency fees I will rise, I actually lost a monthly rent will not cover it.
Any suggestions?
The thing that bothers me is that when I took out my mortgage with the Halifax (Jan 2006) they sent me a booklet with all the t&c's etc and i that it says the administrative charge for a consent to let is ￡75 and when I had my appointment at the local branch to obtain the consent to let they informed me that there is no longer a standard consent to let fee (of ￡75) but they charge a new product arrangement fee of ￡499 and the interest rate changes (resulting in the ￡100 higher monthly repayment)
I find it unbelievable that they charge ￡499 for this as i had been expecting ￡75.
They did also inform me that when I come back and move back into my flat that I can change back to a residential mortgage with any administrative or penalty charges.
I'm just really gutted that I'll actually be renting out my flat for a loss.
There is a reason – how many people apply for residential and try to let. Many. So Halifax has changed their procedure as they do not do buy to let. their subsidary, Birmingham Midshires do. But they are a whole different lender so you would have remption penalties if you wanted to change to BTL. So £499 fee is not much in comparison.
You can only do consent to lease in the branch as you have to sign and the mortgage reviewer signs to give permission and changes your rate at the same time. It is then verbal that the permission is granted. The form is then sent internally to the business centre with a note from mortgage reviewer, to apply to consent to lease indicator to the mortgage.
When you sign the form – you agree to the rate and the fee.
I do consent to leases.
Is the 499 the arrangement for for agreeing a consent to lease and/or a new intrest rate product?
I've mostly heard that people make a phonecall and subsequently have a small amount added to their existing mortgage, not a brand new product. You're only travelling for a year and planning to move back in, I assume. I can't see how a brand new BTL mortgage is going to help. You'd have to take out yet another mortgage when you moved back :confused:
Sure someone with much better product knowledge will be along in a bit.