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Why do I have to pay nearly £400 extra on my existing mortgage Halifax

alana
by alana 03 October 2012  |  Comments 4 comments  |  Love Love  0 loves

I am struggling to pay my mortgage so I tried to sell and found not enough equity to cover expenses. Decided to rent but Halifax told me I would have to change from my variable rate to one of their 3 rates which all have penalties and huge increase in my mortgage from £600 to £1000! any advice please

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Comments (4)

  • MikeGG1
    Love rating 879
    MikeGG1 posted

    They seem to have decided that you need to switch to a 'Buy to Let' mortgage because you would no longer be living there.

    BTL mortgages are more expensive because they are deemed to be more risky for the provider.

    There are other alternatives such as the 'Rent a Room' scheme.

    Mike

    Posted on 03 October 2012 | Love Love  0 loves Report
  • alana
    Love rating 0
    alana posted

    Hello Mike,

    Thanks for your reply

    Rent a Room scheme? I've never heard of that. Is this something I can do without having to go through the Halifax.

    Thank you for giving me another option to consider I will try to find some information about this.

    Alana

    Posted on 04 October 2012 | Love Love  0 loves Report
  • MikeGG1
    Love rating 879
    MikeGG1 posted

    Provided that you are still living there the Halifax should be ok.

    http://www.hmrc.gov.uk/individuals/tmarent-a-room-scheme.shtml

    Mike

    Posted on 04 October 2012 | Love Love  0 loves Report
  • alana
    Love rating 0
    alana posted

    Thanks Mike thats a great help.

    Regards

    Eileen

    Posted on 04 October 2012 | Love Love  0 loves Report

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