higlufc Posted October 7, 2011 Report Share Posted October 7, 2011 I became an unwilling lanlord 3 years ago when i moved in with my girlfriend. I got consent from the halifax to rent my property out as i could not afford to live there. Now i only owe £23k and have about 6 years left to pay at about £400 a month.The trouble they now want to change my mortgage to a buy to let with a 2% rate rise and £600 fee and would tie me in for another 2 years.Would i be better getting a loan or ignoring the halifax letters because they would only penalise me 1% if i dont change to a buy to let mortgage and may take legal action. What legal action could they take. many thanks Link to comment Share on other sites More sharing options...
Richlist Posted October 7, 2011 Report Share Posted October 7, 2011 Now i only owe £23 and have about 6 years left to pay at about £400 a month. Presumably you mean £23K ? What legal action could they take. You will be in breach of your mortgage terms & conditions. They could take action to foreclose on the loan but are more likely to take court action to force you to convert to a BTL loan. If they do you will have to take the BTL loan, pay all of the charges AND probably their court costs a well........not something thats recommended. Link to comment Share on other sites More sharing options...
Melboy Posted October 7, 2011 Report Share Posted October 7, 2011 What legal action could they take. many thanks The Halifax are well known for taking this type of action and I know of another recent case very similar to your case in question......the person lost their case and was forced to go to a BTL mortgage in place of a residential mortgage. You have little choice really and believe me the mighty Halifax have a large legal department to follow things up so don't fight them. Mel. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted October 7, 2011 Report Share Posted October 7, 2011 Can you raise 23K to pay off the mort ? I would look at 0% credit cards - depending on personal circs. i buy props 100% ltv with 0% balance transfers ! Link to comment Share on other sites More sharing options...
higlufc Posted October 10, 2011 Author Report Share Posted October 10, 2011 Can you raise 23K to pay off the mort ? I would look at 0% credit cards - depending on personal circs. i buy props 100% ltv with 0% balance transfers ! no i cant raise that amount, would it be better to get a loan than a mortgage.can you offset the loan against tax i know you can do it for a mortgage, Link to comment Share on other sites More sharing options...
Richlist Posted October 10, 2011 Report Share Posted October 10, 2011 can you offset the loan against tax i know you can do it for a mortgage, Yes you can offset the interest payments on any loan (a mortgage is just another name for a loan) ...used to pay for a rental property. Link to comment Share on other sites More sharing options...
higlufc Posted October 11, 2011 Author Report Share Posted October 11, 2011 y can you offset the loan against tax i know you can do it for a mortgage, Yes you can offset the interest payments on any loan (a mortgage is just another name for a loan) ...used to pay for a rental property. you need a lot of credit cards for that Link to comment Share on other sites More sharing options...
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