How does HSBC treat BTL mortgage?

horngkai

I am planning of converting my current flat to BTL and porting the current mortgage to a new house (need additional mortgage which if everything else satisfy HSBC criteria, they will be happy to provide 2 mortgage product on 1 property).

My question would be if anyone know how HSBC treat BTL mortgage? How do they take that into consideration when assessing my ability to get a residential mortgage?

Thanks.

kingstreet

So, you'll remortgage to a let to buy product and hope to port the rate from your current HSBC mortgage on completion?

You need to ask HSBC if it will permit that, as many lenders only allow a port when you are selling and buying, not remortgaging and buying. You'll also need to ask them if they will ignore the let property and mortgage when establishing affordability for the new one.

As they don't deal with brokers, there's no online criteria to view, so you'll have to ask them directly.

holly_hobby

Yep, HSBC don't accept intermediary business.

But AFAIK they do take account of the BTL mge commitment in their affordability assessment for resi borrowings - so you may have to consider whether its worth staying with them full stop.

Make an appointment and have them go through the figs to see how it plays - then make your decision.

Hope this helps

Holly

Thrugelmir

horngkai wrote: »

My question would be if anyone know how HSBC treat BTL mortgage? How do they take that into consideration when assessing my ability to get a residential mortgage?

Thanks.

This may help.

HSBC current account customers providing you meet all of the points below:

- you hold a HSBC current account, into which your salary has been paid, for at least 3 months; and

-you have previously owned a Buy to let property (you will need to supply tax returns or bank statements showing at least 12 months experience as a landlord) and

- if you are a sole applicant, you have an annual salary of at least £30,000 and if you are joint applicants, you have a combined annual salary of at least £50,000 or one party has an individual salary of £30,000 or more.

The property must be in the UK and we require the first legal charge over the property.

The maximum loan to valuation (LTV) is 75% i.e. a deposit of 25% of the property purchase price or property valuation (whichever is lower) is needed.

A Standard Valuation Report is required for all applications.
Properties must be let under Assured Shorthold Tenancies (ASTs) or let for business purposes.

The minimum loan amount is £25,000 per Buy to let mortgage.

The maximum loan amount is £500,000 per Buy to let mortgage (whether single or joint applicants).

The maximum mortgage term is 25 years for capital repayment mortgages and 15 years for interest only mortgages.

All mortgages are subject to underwriting and lending criteria.
Terms and conditions apply.

horngkai

Thanks all.

I phoned HSBC just now, apprently they only allow porting on sell to buy basis. Also, if I have a BTL, they will take into all outgoing and income for that mortgage (a tenant agreement)