HSBC 3.99% fix / What if I need to rent ?

London28UK

I am about to re-mortgage with HSBC on a 3yr fix at 3.99%. However there is a chance in about 6 months I will loose my job and need to rent out the property as I will probably take on a new job abroad. Does anyone know in these circumstances if HSBC will be ok with me renting out my house in this circumstance ?

I ask this as I was also looking at a 3.74% 3yr fix at Chelsea BS, but then I read that 'If the property is let, the fix rate is withdrawn and you go onto their expensive SVR plus 0.25%' !

TEDDYRUKSPIN

I call it scam to let. LOL..... Seen to many of these situation.

But....

HSBC will consent you to rent the property up to one year only. After that it will be discretionary and if you don't move back into this property, must be converted to a buy to let mortgage.

Many people are doing this as buy to let rates are more expensive.

London28UK

Hi Teddy, thanks for the advice.

Is there any lender that does not do this ? I am re-mortgaging in part to unlock some equity to give myself some safety money. I will not know if the company I am working for is going to make me redundant for 6 to 9 months, although I think the chances are high. So I am just trying to make the best decisions now for my future.

TEDDYRUKSPIN

Stay away from Halifax. If you read the board they are declining people to rent. Plus they charge.

It seems you know you are going to lose your job? Is it a contract job? You even have difficulty getting a mortgage if this is the case.

You need to find an IFA!

London28UK

I have been in my current permanent job since Uni, so the last 10 years. So I know at the moment its easy to re-mortgage as I have a excellent credit history. So this is part of the reason to re-mortgage now to unlock some equity and if the worse happens take a job I have been offered in Asia, I'm an engineer. Yes maybe finding a IFA is a good idea, but i have dealt with some dodgy ones in the past.

TEDDYRUKSPIN

Completely understand your situation. I can only tell you that only two companies that are not so funny with contract jobs. lloyds and HSBC. But..... if you use an IFA they can usually push things through. You must also know that majority of companies change you for consent to let.

HSBC dont!

I understand your situation. Been there. Done that..

starM

TEDDYRUKSPIN wrote: »

I call it scam to let. LOL..... Seen to many of these situation.

But....

HSBC will consent you to rent the property up to one year only. After that it will be discretionary and if you don't move back into this property, must be converted to a buy to let mortgage.

Many people are doing this as buy to let rates are more expensive.

Hi, I am buying a property to rent out. I have checked with mortgage adviser and all BTL mortgage are expensive higher arrangement fee or if there is no fee then the rate is around 7%.

Is it possible to buy property on a normal repayment mortgage and then let is out say for 1 year and then change it to BTL mortgage?

MS

socrates

starM wrote: »

Hi, I am buying a property to rent out. I have checked with mortgage adviser and all BTL mortgage are expensive higher arrangement fee or if there is no fee then the rate is around 7%.

Is it possible to buy property on a normal repayment mortgage and then let is out say for 1 year and then change it to BTL mortgage?

MS

No it is not - there was another thread on this recently.

When you complete the mortgage application it will ask if you intend to reside in the property etc.

If you state you will be resident and they discover you are not then it is bordering on fraud.

If you could do it then almost everyone would avoid BTL mortgages and do it this way.

Remember even if a dodgy mortgage broker tells you he/she can arrange it - it is you that signs the form and it is you that is liable for the consequences.

Balance up the fees and interest rates to yield and reduced purchase prices if the sums add then its worth pursuing

rent_and_buy

London28UK wrote: »

I am about to re-mortgage with HSBC on a 3yr fix at 3.99%. However there is a chance in about 6 months I will loose my job and need to rent out the property as I will probably take on a new job abroad. Does anyone know in these circumstances if HSBC will be ok with me renting out my house in this circumstance ?

I ask this as I was also looking at a 3.74% 3yr fix at Chelsea BS, but then I read that 'If the property is let, the fix rate is withdrawn and you go onto their expensive SVR plus 0.25%' !

like you say you dont know now what might happen in 6 months just check with your lender if they will let you rent, i phoned up and mines said no problem, but i would have to pay a 199 pound fee, but by going on a residential rate it can save you 100's of pounds, ive fixed mine for five years interest only.

just say to them, i may rent it out in the fututre would this be a problem??

They should give you the detail then, a lot of landlords dont like the idea of people doing this as it gives first time landlords a advantage over them, as you can offer lower rent.