HSBC refusing letter to allow us to rent out our property.

Natfor

Hi
Can anyone help? Recently my husband and I decided to put me on tge mortgage and remortgage to extend our home. We did so but now we have decided to go to Australia for a year(ish) instead of putting on the extension now. We contacted HsBC for a letter but they have refused saying that we must have held the mortgage with them for at least 6 months. We have never missed a payment on our mortgage over 6 years and the only reason the new mortgage took so long to complete was due to them taking ages to contact us and terrible solicitors. (we completed 3 months ago)
We have plenty of money in the bank on top of the equity we took out of the house and will have very good jobs in Australia. We already have a guaranteed rental income from a couple who want to rent the house that will easily cover repayments. Is there any way to change HSBC's mind or should we move somewhere different. Does anyone have any suggestions? PLEASE HELP?
Thanks.

DannyboyMidlands

They probably think that you were trying to con them by claiming that your holiday fund was actually gonna be used for home improvements.

Conrad

I'm afraid not. Lenders generally decline permission to let from newish mortgagees as they worry it was a planned ruse all along to get hold of a low residential mortgage rate rather than a higher buy to let product.

I can't see you have any options other than just don't tell em - not soemthing I'd condone though, and also your buildings insurance would become invalid.

Only legit option is wait a while or remortgage to a buy to let product with all the costs that involves.

Thrugelmir

Natfor wrote: »

should we move somewhere different.

You'll encounter same problem with other lenders.

Firstly to remortgage to them, secondly to obtain CTL.

opinions4u

Consider moving to a buy to let lender.

To be fair to HSBC they agreed a residential mortgage with you and a few weeks on you want to use your home commercially.

Natfor

Thanks all for your responses. We are happy to change to a buy to let with all the costs involved and have told HSBC that. The problem with HsBC is they say they won't do a buy to let unless you have had a mortgage of this type before. We didn't go in their pretending we weren't happy to change to a diff higher rate mortgage if required so we are surprised they have been so unhelpful. My husband had banked with them since he was 12. Can anyone recommend a buy to let mortgage where u don't need to have had one before or that other people have had success with.
Thanks

dimbo61

I guess one for a " whole of market mortgage broker" who deals in BTL mortgages

Wh05apk

I think all you can do is re-apply when the 6 months are up, even if that means leaving the property empty for some time (ensure yourinsurance covers empty periods!) otherwise it somunds like you could incur some hefty penalties/charges/rates.

Dave_Ham

There are buy to let lenders that will accept you given your circumstances, but the exit and entry costs would be huge, really huge...!

You can throw yourselves on the mercy of HSBC, although I fear you will get nowhere. I have no love for HSBC lending criteria, but that is some jump from staying put in the UK and having an extension so assuming builders located, planning permission sought etc.

Then 3 months later you have jobs in Oz and all ready to go, sounds a bit sus from a banks perspective.

All the best..

housesitter

Natfor wrote: »

My husband had banked with them since he was 12.

Whilst loyality isn't quite what it used to be with banks, I think that you need to go a bit higher up the food chain and start speaking to people like your bank manager and raise a complaint, citing that it took HSBC so long to process the mortage that if they had been faster then this situation would not have arisen and you would have had the CTL letter.

I have had similar experiences with bank knuckle dragging, with them causing the problems but blaming the customer and with words in the right ears have come out on top. Just have to keep knocking on the right doors and dont take no for an answer.

Thrugelmir

Are your current employers asking you to travel abroad?