Hsbc permission to let

13
Found 1st Dec 2017
I am looking to rent out our home for the next year or two.

We have a mortgage with hsbc.

When you ask for permission to let do you still stay on the same mortgage product or do they move you to a different product?


Thanks.
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As far as I'm aware unless things have changed (can't see on their website) HSBC allows residential mortgage customers to stay on their existing rate if they rent a property for 12 months or less.
A lot of lenders add a loading on though if you want to stay on the same mortgage but let your home out - check your terms and conditions - mine had a 1-2% loading on my fixed rate without turning it into a formal buy to let mortgage.
I intend to buy a new house as we have outgrown ours.

When applying for mortgage for new house, would the lender take into account the potential rental income we could get from renting our current home?
ran123ran8 m ago

I intend to buy a new house as we have outgrown ours. When applying for …I intend to buy a new house as we have outgrown ours. When applying for mortgage for new house, would the lender take into account the potential rental income we could get from renting our current home?


yes i think so, but any rent would need to pay for the old mortgage and letting mangement fees.
plus some months it may not be rented.
This is how property empires start, someone buys a property and lets it for much more than the mortgage ,can then afford another properry which can be let for more than the second mortgae , etc, etc , until interest rates rise and rent go,down and it collapses like a pack of cards.
Why don't you get a Let to Buy mortgage on your current house and use the cash to buy your new home. Lenders take the rental income to determine the amount they lend to you instead of your income as on a standard residential mortgage.
For example BIrmingham Midshires
Toptrumpet10 h, 28 m ago

Why don't you get a Let to Buy mortgage on your current house and use the …Why don't you get a Let to Buy mortgage on your current house and use the cash to buy your new home. Lenders take the rental income to determine the amount they lend to you instead of your income as on a standard residential mortgage.For example BIrmingham Midshires


Mortgage on current home is residential with hsbc...how would let to buy work?
Would i neee to change existing mortgage to let to buy with current lender?
And when i apply for mortgage for new property that will be a residential mortgage?
I have never come across a let to buy mortgage so not sure how it works.
Edited by: "ran123ran" 2nd Dec 2017
why do you want to rent out your house for a year or two instead of just selling it?
Because house prices have started moving up in my area.
In a year or two i am hoping to have gotten significant growth, will sell house, pay off hsbc and use what is left over for a double storey extention to the new house which is on a very large plot.
Let to Buy is a specialist type of Mortgage which really you need to find via a mortgage broker. Most high street lenders don't offer them, HSBC being one of them.
foun this short explanation which might help Here
Toptrumpet1 h, 3 m ago

Let to Buy is a specialist type of Mortgage which really you need to find …Let to Buy is a specialist type of Mortgage which really you need to find via a mortgage broker. Most high street lenders don't offer them, HSBC being one of them.foun this short explanation which might help Here


Thanks
ran123ran4 h, 28 m ago

Because house prices have started moving up in my area.In a year or two i …Because house prices have started moving up in my area.In a year or two i am hoping to have gotten significant growth, will sell house, pay off hsbc and use what is left over for a double storey extention to the new house which is on a very large plot.


so have you already got another house or are you planning to buy this 'new house'?
Planning to buy new house. Got an appointment with mortgage advisor on monday.
ran123ran4 h, 1 m ago

Planning to buy new house. Got an appointment with mortgage advisor on …Planning to buy new house. Got an appointment with mortgage advisor on monday.


If you keep your old house and rent it out, it will make things complicated for buying the new one. Renting out properties is not for the squeamish, many things can go wrong and you can be taken to the cleaners by bad tenants and estate agents.

you will have to pay an extra 3% stamp duty on the new house if youkeep the old one because it will be considered a second home. Unless you have a big equity on your old house, keeping it may give the bank concern when they look at giving you a new mortgage on the new house as they will consider the old house a liability.
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