thinking of downsizing

rammster

Thinking of purchasing a 100k property with first direct tracker capital repayment mortgage. Its a 1BR/1BA house. would let out my 3BR/1BA House whose mortgage is with HSBC as interest only.,

Now if I let my 3BR (180k) house - and inform HSBC , by how much are my interest only payments going to shoot up (I am on 3 yr fixed deal with HSBC at 6.09%)

And also another scenario- I purchase this smaller house and move in while rent out my 3 bed room house and after 6 months my missus says I dont want to live there. Can I go back to my 3 bed room house and let out the 1 bed room house even though I purchased it on terms that it was owner residential mortgage.

Will this get me in a situation where I have double whammy of increased interest rates on both houses. :mad:

Please help.

rammster

anybody help

_Andy_

If you ring HSBC they may grant consent to let meaning the interest rate you have at present will stay the same.
In the second scenario it will depend on the lender but might well be OK.

rammster

So its better that I rang them and got their consent before I got into this move into smaller house business.

_Andy_

rammster wrote: »

So its better that I rang them and got their consent before I got into this move into smaller house business.

Yes you need to inform then and get them to give you consent.