applying for HSBC tracker - with consent to let - will us be approved?

gemma.zhang

We're applying for HSBC life time tracker on a property we're buying( which will be our main residency ). We'll let out our current property, and we've already got consent to let from Natwest.

We've heard from our mortgage advisor that it's very difficult to apply for HSBC's tracker, especially that we've the potential risk of paying both mortgages in case we can't find the tenant.

Any one's got experience in similar situation, as how difficult it is to get the mortgage approved?

p.s we've borrowing 67% of the house price, and have decent salary to
cover it.

advice appreciated.

Thrugelmir

HSBC are very tough when it comes to underwriting criteria. Quite possibly they will take exception to the fact you already have a residential mortgage.

gemma.zhang

Hmmm, sounds like our current mortgage does us a favour.!!??
Having a doubt! It woulld be disadvantage for us coz if we can't let out, we might need to pay two morgages.

Anyone has similiar experiece?0

obee

I am also letting my previous residential home (with a Consent to Let from NATWEST) and now applying for a mortgage with Barclays. They ignored my other mortgage because it was a BTL. They said as long as my other mortgage is a Buy to Let, it will be discounted from the affordability calculations.

Engeroosi

i did it with HSBC but both my partner and I both have residential mortgages on properties that are let out. but we still got a mortgage offer as they judged we could afford to pay all three mortgages if necessary, so it is possible if your figures stack up.

gemma.zhang

Engeroosi wrote: »

i did it with HSBC but both my partner and I both have residential mortgages on properties that are let out. but we still got a mortgage offer as they judged we could afford to pay all three mortgages if necessary, so it is possible if your figures stack up.

I c. Thanks.
They don't consider based on it will be let??!
That migh be risky :-(

Thrugelmir

gemma.zhang wrote: »

They don't consider based on it will be let??!

No guarantee that this will the case every month.

So ability to service 2 mortgages may a factor.

Engeroosi

they dont take rent into consideration at all.

gemma.zhang

Engeroosi wrote: »

they dont take rent into consideration at all.

our two mortgage will add up to 50% of monthly income. Will that be ok?

dshart

I had a similar experience a couple of years ago when I came off a 2 year deal with Halifax, I spoke to an adviser and was told there were very few deals around at the time and the best they could get me was a tracker that was 1.6% above the base rate, which was quite a jump considering my deal with Halifax had been 0.11% above base rate. I searched HSBC website, who I bank with, and saw they were offering a lifetime tracker at 0.69% above the base rate and I mentioned this to the adviser, who said it was very difficult to get the HSBC product and warned that the setup fees were non-refundable even if I got turned down.

Anyway I spoke to my HSBC relationship manager as I am a premier customer and the setting up and transfer of the mortgage was very simple. The setup was refundable if my application had been unsuccessful. Overall I was very happy with the service I received from HSBC and would reccommend them. I am now with them on a lifetime tracker 0.69% above base rate with no penalty for overpayments and no tie in clause.

It would be worth speaking to a HSBC represantative about your mortgage requirements to get a better idea if you would meet their requirements.

Engeroosi

think we were less than 40 percent of take home pay, but agree with above, speak to them. I was fee free also so didnt have to risk losing application fee.