Mortgage and Consent to Let Query

gmarchy

I currently have a repayment mortgage on an apartment that is probably slightly in arrears. I am separately saving and hope to buy within 12-18 months with my girlfriend.

However, i dont want to sell my apartment and want to rent it out but obviously my LTV is 100%. so, HSBC would not give me a consent to let i am sure. However my dad has well over a £1m in equity on his homes and he is actually named alongside me on the mortgage - i just wondered if there was any chance of getting a consent with this to back it up?

help/advice would be appreciated

luckyfool

His equity in other properties is unlikely to be a factor, unless they are mortgaged with HSBC, and even then I doubt they would care.

Have they allowed you to switch to interest only?

gmarchy

thanks - to be honest there is no point sitching to interest only its just moved off that and has only gone up £13 a month because of 1.5% variable rate...

i thought that might be the case - seems crazy they wouldnt have it as a gaurantaur factor but thought id investigate... what would your opinion be regarding trying to rent it out then?

herbiesjp

gmarchy wrote: »

I currently have a repayment mortgage on an apartment that is probably slightly in arrears.

This will cause problems with your new purchase unless you have a large deposit

gmarchy

to be honest, hopefully by the time i have saved the deposit (12-18 months) the apmt should wipe its face 100% ish! its doing my head in because we can afford another mortgage no problem but the apmt is hamstringing me

luckyfool

Herbiesjp is referring to the arrears. Any mortgage arrears (late or missed) in the 12 months running up to a new mortgage application is going to scare off any high street lenders unless you were putting down a huge deposit, and maybe still even then.

herbiesjp

luckyfool wrote: »

Herbiesjp is referring to the arrears. Any mortgage arrears (late or missed) in the 12 months running up to a new mortgage application is going to scare off any high street lenders unless you were putting down a huge deposit, and maybe still even then.

Well said

gmarchy

ah sorry, maybe ive used wrong terminology... i have always paid my mortgage no problem... i meant that its slightly in negative... perhaps 5% at moment, but hopefully should be back up over my mortgage maount within a year or so as im paying off amounts...