Halifax- unfair terms for consenting to sublet?

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    Halifax- unfair terms for consenting to sublet?

    I have my residential mortgage with Halifax on 5 yr fixed. Property is worth about 200k with mortgage about 180k. Current mortgage payments are approx £1150.

    I have been offered a position abroad.

    I would like to take said position and have contacted Halifax for consent to lease.

    I would be lucky to raise £700 rent on property and I would subsidise rest.

    Halifax want to change my mortgage rages to 6.94% (currently 5.49/5.99) and charge £500 for the priviledge. Would be an extra £200 more per month that I really can't afford.

    Would have to pay approx £8k early repayment fee.

    I would only want agreement for 1 year to see if job works out but now am in catch 22. Can't afford increased mortgage (subsidised £500 per month), don't want to sell property, to change lenders would be £8k fee.

    Halifax stinks! I am really annoyed. Most lenders I have looked at do a one-off fee up to 3 years. How do Halifax get away with this? Is there anyway it can be negotiated? Advice greatfully appreciated. The job abroad isn't for money - but to trial a new lifestyle - I don't earn loads and have two little ones under 4 so having to worry about being taken to the cleaners by my mortgage lender where I wouldn't be making a profit anyway is hard to swallow.

    Many thanks for reading and for any advice.

    #2
    Sorry cant help you myself but if you Post the above at http://www.consumercorner.co.uk

    And

    http://http://www.penaltycharges.co.uk/

    Should get some more advice from there aswell as here regarding your situation

    Comment


      #3
      Originally posted by davedarave01uk View Post
      sorry Cant Help You Myself But If You Post The Above At http://www.consumercorner.co.uk

      And

      http://http://www.penaltycharges.co.uk/

      Should Get Some More Advice From There Aswell As Here Regarding Your Situation
      do Not Use Above Links To Sites>>they Have Just Made My Firewall Go Mental
      What i write is what i think....If you need solid info PAY A SOLICITOR!!

      Comment


        #4
        Originally posted by starlettings View Post
        do Not Use Above Links To Sites>>they Have Just Made My Firewall Go Mental


        Are you mad or something there is nothing wrong with the sites above and my Firewall is ok.
        You probably have a virus or something on your comp if your going to sites like that and its stopping you from seeing them.

        Both sites have alot of help and free advice from people in the know and have been running for awhile now and have aload of members
        Probably more members on one of those sites than here.

        Comment


          #5
          You are changing the status of your mortgage therefore Halifax will change you from a residential rate to a BTL rate. Rates are affected by risk. That is what they do to the rest of us landlords.

          They don't have to give you consent to let.

          6.94% is not bad at the moment.

          You'll either have to let, taking the chance they won't find out or you'll have to go onto the BTL rate.

          Welcome to the wonderful world of landlording.

          Comment


            #6
            When I got the consent to let, they didn't try to hit me with a redemption penalty, as I was switching to a higher rate mortgage...seems harsh to charge £8k when they are retaining the business.

            Comment


              #7
              Originally posted by davedarave01uk View Post
              Are you mad or something there is nothing wrong with the sites above and my Firewall is ok.
              You probably have a virus or something on your comp if your going to sites like that and its stopping you from seeing them.

              Both sites have alot of help and free advice from people in the know and have been running for awhile now and have aload of members
              Probably more members on one of those sites than here.
              No i am not mad. The sites are....guess you a a nigerian scammer.
              What i write is what i think....If you need solid info PAY A SOLICITOR!!

              Comment


                #8
                Dont know if youve noticed but by renting your house out for £700 a month you will likley to go over your personal allowance for this year and be liable for income tax here in the UK.

                Comment


                  #9
                  The sites are fine but you've got http twice on one of the links - just needs deleting.

                  Comment


                    #10
                    Originally posted by starlettings View Post
                    No i am not mad. The sites are....guess you a a nigerian scammer.
                    Lol what an idiot.
                    There uk sites helping people out with all sorts of problems though mainly reclaiming bank charges.

                    I suggest you update your computer with better software if you cant access uk sites.
                    Oh and my name is dave and I live in the uk and Im English born and bred
                    So get your facts right before spouting out rubbish

                    The sites are fine but you've got http twice on one of the links - just needs deleting.
                    I cannot edit the post so cannot remove the extra 'http'

                    Comment


                      #11
                      Ignore starlettings ... he is a starpratt!
                      GOVERNMENT HEALTH WARNING: I am a woman and am therefore prone to episodes of PMT... if you don't like what I have to say you can jolly well put it in your pipe and SMOKE IT!!

                      Oh and on a serious note... I am NOT a Legal person and therefore anything I post could be complete and utter drivel... but its what I have learned in the University called Life!

                      Comment


                        #12
                        Originally posted by Planner View Post
                        Dont know if youve noticed but by renting your house out for £700 a month you will likley to go over your personal allowance for this year and be liable for income tax here in the UK.
                        Doesn't this depend on your outgoings in terms of mortgage, fees, wear and tear etc?

                        Kind regards,

                        John

                        Comment


                          #13
                          Thanks for all responses everyone...but I am still no where near a solution and the Halifax can't be bothered to call me back!

                          So, here I am - stuck.

                          Can't move to a job I'd like to. If I sell I am in negative equity due to get out charges and I can't rent it through consent to let because i won't be able to afford the increased payments. They have me well and truly stuck!!

                          Surely they'd rather I continue with the mortgage payments as they are? I'm not happy with the Halifax and I'll certainly be moving all business from them when I am "free" to.

                          Comment


                            #14
                            Originally posted by Liose View Post
                            Thanks for all responses everyone...but I am still no where near a solution and the Halifax can't be bothered to call me back!

                            So, here I am - stuck.

                            Can't move to a job I'd like to. If I sell I am in negative equity due to get out charges and I can't rent it through consent to let because i won't be able to afford the increased payments. They have me well and truly stuck!!

                            Surely they'd rather I continue with the mortgage payments as they are? I'm not happy with the Halifax and I'll certainly be moving all business from them when I am "free" to.
                            Post #5 sumarises the position. There is no easy solution, nor (sadly) is there forced to be one.
                            If Halifax refuses to reply, demand its Complaints Procedure and, thereafter, try the Banking Ombudsman to which scheme it subscibes.
                            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                            4. *- Contact info: click on my name (blue-highlight link).

                            Comment


                              #15
                              The change to a BTL mortgage rate seems fair - but not the enforced redemption penalty.

                              Comment

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