Mortgage Variations for Existing Customers

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As a mortgage customer of the Hanley, we understand that your circumstances can change and you might need the flexibility to change your mortgage to suit you. This is why we have covered the topics below to provide some ways you can vary the terms of your existing mortgage with us.

  • Increase or decrease the term
  • Change the repayment type
  • Consent to Let (on a temporary basis)
  • Converting a residential mortgage to Buy To Let (on a permanent basis)
  • Add and Removing borrowers (Transfer of Equity with no additional borrowing)

The Hanley Economic Building Society is not obliged to consent to varying the mortgage contract. But we’ll consider most applications on an individual basis. In considering whether to give consent, we need to be satisfied that the borrower(s) meet our lending criteria. Please read our lending criteria which is available online to make sure you and the property meet our conditions.

Level of Service

Execution Only Declaration

If you want to apply for a variation to your mortgage online, don’t require additional borrowing and are certain of the exact changes you wish to make to your mortgage, we can process this through an ‘Execution only’ service where no advice is provided.

When applying for a mortgage on an execution only basis you will make all the decisions regarding the suitability of the mortgage yourself and will not receive any advice from The Hanley regarding suitable products. You’ll need to be comfortable choosing a mortgage without our advice and be sure about which mortgage is right for you because you will be responsible for the mortgage you choose.

If you proceed on an Execution only basis you must accept the following:

  • You will not receive any advice or personal recommendation from a mortgage advisor as to whether the mortgage and product features meet your specific requirements.
  • The Hanley will not assess the suitability of your mortgage based on your personal needs or circumstances.
  • You are waiving your rights to Financial Conduct Authority protections regarding mortgage suitability and rights to compensation if the mortgage is not right for your needs. You may still have rights to compensation if anything else goes wrong.

You also confirm that you understand and accept the above conditions and that you are making an informed and positive selection to proceed without advice.

Advice

If you are not sure of the exact changes you wish to make to your mortgage or you wish to borrow additional funds, we recommend speaking to a qualified mortgage adviser. By choosing the advised service, a mortgage adviser can help by making a personal recommendation, taking into account your needs and preferences, to make sure the changes to your mortgage are right for you. You’ll be protected by the advice rules of the Financial Conduct Authority.

To apply with advice, call on 01782 255000 to book an appointment with one of our qualified mortgage advisers. They can talk you through your options and make recommendations based on your individual circumstances.

If you want to get an estimate of how much your mortgage would cost each month based on your proposed changes, please visit Mortgage Calculator. Other sources of information can be found on Moneyhelper by selecting ‘Homes’ and ‘Buying a home’. You will find the information that you need to use these calculators on your Annual Mortgage Statement. If you wish to discuss the calculations, you will need to speak to a mortgage adviser. It is important to note that we will not be able to do this if you wish to proceed on an Execution only basis.

If we are able to consider your request, we will provide you with an illustration that details any costs. You can request more than one illustration if you wish.

Once you have considered the illustration and the costs involved, you can make an application to us to change your mortgage. In some instances, we’ll need to make sure you can afford the mortgage following the change and carry out a credit check to make sure that you meet our current criteria.

If you don’t require any additional borrowing and are comfortable changing your mortgage on an Execution only basis, you can request an illustration and application form by completing the enquiry form below.

Please complete the enquiry form below if you wish to request a variation to your mortgage contract on an Execution only basis.

Before you complete the Enquiry Form, please make sure you have read and understood how the Society use your information by reviewing our privacy notice on our website Privacy Notice

The information you provide will be held by Hanley Economic Building Society. We’ll use it to process your application and help manage your account(s) or any other services you use.

Mortgage Variation Enquiry Form

Increase or decrease the term

This can be done at any time and we may carry out affordability checks as part of the application depending whether reducing or extending the mortgage term and your proposed retirement age. Bear in mind, the longer you take to pay the mortgage, the more interest will be charged.

Fees will be charged for this and the costs can be found on our website or in your ‘Tariff of mortgage charges’ issued with your original mortgage.

You are not eligible to apply if:

  • More than 1 months in arrears with mortgage payment
  • Anyone of the mortgage has been declared bankrupt and not been discharged
  • If this is a guarantor/family assist mortgage
  • You want a longer term than 40 years
  • The term is extended past the 75th birthday of the oldest borrower
  • You have a leasehold property that doesn’t have at least 85 years remaining on the lease from the date of amending the term
  • You have taken out a Retirement Interest Only mortgage

Changing the term on an interest only mortgage will not affect the monthly payment. However, the term can be changed to coincide with the maturity of a repayment plan. If you are wanting to change the term on an Interest only mortgage, we would need to see proof of your repayment plan.

Changing the mortgage term can have a big impact on your financial situation, so it’s really important to understand your options.

Change the repayment type

This can be done at any time and we will carry out affordability checks as part of the application. Fees will be charged for this and the costs can be found on our website or in your ‘Tariff of mortgage charges’ issued with your original mortgage. You can switch all or part of your mortgage from one repayment type to another. Switching all or part of your mortgage from interest-only to repayment will mean your monthly payments will go up. This is because you will start repaying some of your loan balance as well as paying interest.

Switching all or part of your mortgage from repayment to interest-only will mean your monthly payments will go down. This is because you will be paying only interest and you will pay nothing to reduce the loan balance. This means you will need a lump sum at the end of the mortgage term to repay the loan and we will need to see evidence of your repayment strategy before we agree to a switch to interest only. With an interest-only mortgage, you may pay us more interest over the life of the mortgage than you would with a repayment mortgage.

Interest-only mortgages are limited by borrower type, loan to value (LTV) and subject to other lending criteria.

You are not eligible to apply if;

  • For interest only if on zero hour or banked hour contracts
  • More than 1 months in arrears with mortgage payment
  • Anyone of the mortgage has been declared bankrupt and not been discharged
  • If this is a guarantor/family assist mortgage
  • You want a longer term than 40 years
  • You have a leasehold property that doesn’t have at least 85 years remaining on the lease from the date of amending the term
  • You have taken out a Retirement Interest Only mortgage

Changing the mortgage repayment type can have a big impact on your financial situation, so it’s really important to understand your options.

Consent to Let (on a temporary basis)

This is an agreement that allows you to alter the conditions of your residential mortgage agreement for a short period of time and to rent out your property. You are in breach of your mortgage terms and conditions if you rent out your property without receiving our permission to do so.

Fees will be charged for this and the costs can be found on our website or in your ‘Tariff of mortgage charges’ issued with your original mortgage.

You are not eligible to apply if:

  • You live in Scotland
  • You are a portfolio landlord with 4 or more properties
  • Gross income is less than £20,000 or £40,000 for loans over £200,000 or £50,000 for loans over £300,000
  • The mortgage completed within the last 6 months
  • If renting as a student let/holiday let/B&B/guesthouse/to family/multiple tenancies/asylum seekers/sale and leaseback arrangements
  • Maximum 80% Loan to Value (LTV)
  • Minimum rental income of 145% of the mortgage payment (interest only) based on a minimum interest rate of 5.5% or initial product pay rate plus 2% whichever is greater
  • The tenancy agreement is not arranged on an Assured Shorthold basis and for a period less than 6 months or more than 12 months
  • More than 1 months in arrears with mortgage payment
  • Anyone on the mortgage has been declared bankrupt and not been discharged
  • If this is a guarantor/family assist mortgage
  • The person on the mortgage will remain living in the property.
  • If moving overseas you must use a managing agent to oversee the property
  • The freeholders consent is not provided on leasehold properties
  • If landlord insurance is not taken out

Landlord obligations and renting your property

  • Having an Assured Shorthold Tenancy agreement (AST) which is regulated by the Housing Act 1988. We recommend that you seek advice from a letting agent or independent legal advice on the terms of the proposed tenancy agreement.
  • Taking Tenancy Deposits and using Deposit Protection Schemes, such as, Deposit Protection Service (DPS) or My Deposits. Landlords that don’t protect their tenant’s deposits when required can be taken to court by the tenant.
  • Having valid landlord insurance because standard home insurance policies do not normally provide cover for renting out properties
  • Landlord repair and maintenance obligations to ensure the property is safe, fit for use and in a fair condition, including gas and electrical safety and fire safety of furnishings checks
  • At the end of an Assured Short-hold tenancy (AST) as a landlord you have automatic rights to possession of the property, as long as you have given the tenant 2 months’ notice to vacate the property. If the notice period expires and the tenant has not left the property, you will need to start the process of eviction through court. You must not forcibly remove a tenant without an eviction order.

Converting a residential mortgage to Buy To Let (on a permanent basis)

This is where you can change your residential mortgage to a buy to let on a permanent basis and rent out your existing property. You are in breach of your mortgage terms and conditions if you rent out your property without receiving our permission to do so.

Being able to switch your residential mortgage depends on;

  • Your current mortgage type
  • What your intentions are with the property
  • Your future living arrangements
  • Other mortgages you have
  • Terms of your current mortgage
  • Lender consent

Fees will be charged for this and the costs can be found on our website or in your ‘Tariff of mortgage charges’ issued with your original mortgage.

You are not eligible to apply if:

  • You live in Scotland
  • You are a portfolio landlord with 4 or more properties
  • Gross income is less than £20,000 or £40,000 for loans over £200,000 or £50,000 for loans over £300,000
  • The mortgage completed within the last 6 months
  • If renting as a student let/holiday let/B&B/guesthouse/to family/multiple tenancies/asylum seekers/sale and leaseback arrangements
  • Maximum 80% Loan to Value (LTV)
  • Minimum rental income of 145% of the mortgage payment (interest only) based on a minimum interest rate of 5.5% or initial product pay rate plus 2% whichever is greater
  • The tenancy agreement is not arranged on an Assured Shorthold basis and for a period less than 6 months or more than 12 months
  • More than 1 months in arrears with mortgage payment
  • Anyone on the mortgage has been declared bankrupt and not been discharged
  • If this is a guarantor/family assist mortgage
  • The person on the mortgage will remain living in the property.
  • If moving overseas you must use a managing agent to oversee the property
  • The freeholders consent is not provided on leasehold properties
  • If landlord insurance is not taken out

Landlord obligations and renting your property

  • Having an Assured Shorthold Tenancy agreement (AST) which is regulated by the Housing Act 1988. We recommend that you seek advice from a letting agent or independent legal advice on the terms of the proposed tenancy agreement.
  • Taking Tenancy Deposits and using Deposit Protection Schemes, such as, Deposit Protection Service (DPS) or My Deposits. Landlords that don’t protect their tenant’s deposits when required can be taken to court by the tenant.
  • Having valid landlord insurance because standard home insurance policies do not normally provide cover for renting out properties
  • Landlord repair and maintenance obligations to ensure the property is safe, fit for use and in a fair condition, including gas and electrical safety and fire safety of furnishings checks
  • At the end of an Assured Short-hold tenancy (AST) as a landlord you have automatic rights to possession of the property, as long as you have given the tenant 2 months’ notice to vacate the property. If the notice period expires and the tenant has not left the property, you will need to start the process of eviction through court. You must not forcibly remove a tenant without an eviction order.

Add and Removing borrowers (Transfer of Equity with no additional borrowing)

If you wish to add someone to or release them from the mortgage, you will need to apply for what is called a transfer of equity.

You can;

  • Change from a single to a joint mortgage
  • Change from a joint to a single mortgage
  • Replace borrower on a joint mortgage

You need to apply for a remortgage in the names of the new property owners.

Fees will be charged for this and the costs can be found on our website or in your ‘Tariff of mortgage charges’ issued with your original mortgage.

As a remortgage is a legal process, a solicitor will be required to change the names on the title deeds and they will charge you a fee which we have no influence over. The solicitor you instruct must be on our approved panel. We will check this as part of the application. Please contact us if you would like details of the solicitors on our panel.

You are not eligible to apply if:

  • The mortgage will continue to have 3 or more borrowers
  • The person removed from the mortgage will remain living in the property, and a lifetime tenancy is or will be in place
  • More than 1 months in arrears with mortgage payment
  • Anyone on the mortgage has been declared bankrupt and not been discharged
  • If this is a family assist mortgage
  • Mortgage is regulated by the CCA when taken out
  • You want a longer term than 40 years
  • The term is extended past the 70th birthday of the oldest borrower

We need to make sure all applicants can afford the mortgage by carrying our credit checks and an affordability assessment on all applicants. They will need to provide proof of income.

Please allow at least 12 weeks for successful completion.