Consent to Rent on a Residential Mortgage?

rboltonuk

I bought a flat recently and am now considering not moving in to it as they have started laying people off where I work. My mortgage is with HSBC on a tracker and the rate is quite low for the present. Im half anticpating that they might invoke some rule or say that it cannot be done without being stung for a hefty re-arrnagment fee or increase in rates.

Any suggestions greatly welcomed...

Premier_2

Flog it .


If for some unknown reason you do want to keep it, and HSBC do sting you, shop around for a better deal from another lender. How much equity did you put in? You'll probably need 30% for a BTL. I doubt HSBC will grant a consent to let on your residential mortgage since you've never lived in it - but you can ask.


In the meantime don't forget to tell your insurance company you are not living in it - they'll sting you for sure!

rboltonuk

i put down 10%

i dont want to sell it for various reasons, mainly tho because i like the location and plan to live in it in the future

has anyone else done this?

poppysarah

You not living there might kill your tracker rate.

QTPie

A new slide on the same question.

What if you have been living in the house for 5 years... if we can't sell (looking that way) am considering renting it out instead. I would also look at remortgaging through another lender...

We currently have 75% (or more) equity. Might look to draw down on that - either at the time of remortgage or later.

Better (or even possible) to either:
- remortgage as a residential mortgage (may well stay there another 6/9/12 months anyway) with the current level of equity.
- remortgage as a residential mortgage (may well stay there another 6/9/12 months anyway) with the reduced level of equity (possibly down to 30%)
- remortgage as a BTL mortgage (and move out now?) with the reduced level of equity (possibly down to 30%). I am assuming that it wouldn't be a good idea to BTL mortgage and then try to reduce equity...

Thanks
QT

silvercar

rboltonuk wrote: »

I bought a flat recently and am now considering not moving in to it as they have started laying people off where I work. My mortgage is with HSBC on a tracker and the rate is quite low for the present. Im half anticpating that they might invoke some rule or say that it cannot be done without being stung for a hefty re-arrnagment fee or increase in rates.

Any suggestions greatly welcomed...

Mortgages start when you complete the purchase. Have you completed? If so, why aren't you living there now? If you haven't yet completed then I imagine you mean that you have a mortgage offer but the mortgage hasn't yet been drawn down.

There are important legal implications if you are changing your plans before you complete on your mortgage.

If you can indicate whether you have completed, if you have the mortgage already and when it started we can advise further.

silvercar

QTPie wrote: »

A new slide on the same question.

What if you have been living in the house for 5 years... if we can't sell (looking that way) am considering renting it out instead. I would also look at remortgaging through another lender...

We currently have 75% (or more) equity. Might look to draw down on that - either at the time of remortgage or later.

Better (or even possible) to either:
- remortgage as a residential mortgage (may well stay there another 6/9/12 months anyway) with the current level of equity.
- remortgage as a residential mortgage (may well stay there another 6/9/12 months anyway) with the reduced level of equity (possibly down to 30%)
- remortgage as a BTL mortgage (and move out now?) with the reduced level of equity (possibly down to 30%). I am assuming that it wouldn't be a good idea to BTL mortgage and then try to reduce equity...

Thanks
QT

Yours is really a differnet question, you have your mortgage, you have lived in the property and you are considering next steps. Your options are much greater.

Please start your own thread or the postings will get confusing.

QTPie

silvercar wrote: »

Yours is really a differnet question, you have your mortgage, you have lived in the property and you are considering next steps. Your options are much greater.

Please start your own thread or the postings will get confusing.

Sorry, will do

QT