Consent to let HSBC Catch22 Advice needed!

Tuckersluck

I'm looking to buy a new property and hopefully rent out my flat in london. I've spoken to my current lender HSBC and they say they do offer a 12 month consent to let if you have a reason other than investment. I said I didn't want to sell yet as I would like to redecorate to get the best price possible (a half truth!) and the HSBC man said he was 90% sure I'd get it.
But he also advised me that once you have the consent to let you can't change your mortgage deal. I'm currently on the HSBC SVR so would like to look at getting a 2 year deal with them. So obviously I would need to get this new deal in place before I ask for consent to let.
But I'm worried that if I apply for a new deal and then they DON'T give me consent to let then I'm stuck in a 2 year deal with them and can't rent out my flat (Of course paying the fees to exit the deal would be an option, but that would be a waste of a lot of money!)

I'm guessing the consent to let thing is a bit of a loophole, but HSBC don't offer buy to let mortgages unless you've had 12 months landlord experience... so it sounds like they expect you to do it this way...

I must admit I'm a bit naive about consent to let and buy to let.
Can anyone advise? Anyone done a similar thing?

Thrugelmir

Tuckersluck wrote: »

But I'm worried that if I apply for a new deal and then they DON'T give me consent to let then I'm stuck in a 2 year deal with them and can't rent out my flat

Is running a business for you then? Renting the property out is just one risk of many.

Do you meet the criteria for BTL mortgages? After a year that's the product range they'll switch you to as well.

Tuckersluck

Thanks for your quick reply. I'm not sure I understand your first question.
I understand there are risks involved, do you have some specific ones you are thinking of that would be useful for me to know?
The criteria for a buy to let mortgage from HSBC is that you have a current account with them and 12 months landlord experience. They also me told that you can apply for a further 12 months consent to let... But yes there is also the worry that that they don't give consent at that stage as well.

I was hoping someone might have experience of this situation or clearer knowledge of how it works than me! It seems to be a grey area with the HSBC.
Has anyone ever been declined consent to let? And for what reasons?

R_P_W

You say you want to redecorate to get th best sale price and say that is a half truth - not the best start

Tuckersluck

Hi RPW
Do you mean not the best start on the letting process or on the forum ?
Could you explain please.

Tuckersluck

Anyone else got any advice or experience of this?

Thanks

amnblog

Tuckersluck wrote: »

I said I didn't want to sell yet as I would like to redecorate to get the best price possible (a half truth!)

and what is the whole truth?

sazpot

I have had consent to let with HSBC for 3 consecutive years on a fee free tracker mortgage with no problems. The consent to let has never cost me a penny (other than being stuck with my 3.29% above base rate deal).

I have been warned last year that a 4th year is unlikely. I do not qualify for an HSBC buy to let as I do not earn over £30k so I am a little stuck.

I have only been asked 2 of the 3 times for a reason I wish to have consent to let and the only real reason is that I live with my OH in a property solely owned by him and I don't want to give up owning a place myself by don't earn enough for the BTL product.

From what I understood you had to be 6months in to your mortgage as a homeowner and not have any arrears and they would be likely to give consent.

Tuckersluck

Thanks for your reply Sazpot, that's very useful to know.
I think I really only want to do it for a year, (until I qualify for a HSBC BTL mortgage), but if I get a new deal with them it'll be a 2 year deal at least, which is why I'm a bit confused!
Thanks for letting me know the reason you gave. From your example it sounds like they are quite lenient about it. If I go for a new deal then I really dont want to be denied consent to let as it will stuff up all the plans! and I'll be stuck in a 2 year deal!

amnblog - The whole truth is that I just want to keep hold of the flat and try letting it, as I'm lucky enough to be in a position where I can maybe do that. So strictly I should probably be looking at a BTL mortgage I think. But HSBC don't offer that unless you have 12 months landlord experience... (but they do give 12 months consent to let, almost as if they expect people to go for that first..?)

As I say I'm new to this and I'm trying to workout what people do/ how it works. And don't want to get a 2 year deal and then get denied consent.

Has anyone else reading done this before or have any advice?

ACG

Why not port your current mortgage to your new property (taking out any additional borrowing if needed) and then get an actual BTL Mortgage on your flat?

Tuckersluck

ACG- A couple of reasons.
Mainly because I hope to buy a new place with my partner, the current flat we live in is owned by me and we would like to keep the two things separate to keep it simple.
Secondly because of the higher BTL rates.