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Consent to Let, will I get it?

HI, looking to let my house because I'm moving out of Newcastle, going down South for a new job. Don't want to sell up.

Before I request consent to let from our lender I wanted to know what you thought my chances were of them granting it and what conditions you think they may enforce...

I'm only 1 year into a 25 year capital repayment mortgage, it's with HSBC, always banked with them (have good credit, always paid on time etc).

Ive read some places require you to have a certain amount of equity in the house, although I would only have about 12% of the purchase price, I would have about 20% of the current market value (due to getting a good deal when buying).

Do you think they will make me move onto interest only? Allow me to stay on the same mortgage but charge a fee? Allow it for a limited time (Id want at least 2 years)? Or deny me it altogether?

What do you think?
Cheers
«1

Comments

  • One way to find out.. ;)
  • nubbins
    nubbins Posts: 725 Forumite
    I am not an expert or 100% but with Nationwide for example I do not think the amount of equity is an issue, I am sure I read somewhere someone getting consent to let with 9%. Speak to your lender and they should give you all the info
  • LEJC
    LEJC Posts: 9,618 Forumite
    assuming you go down the route of renting out....have you also looked into the costs associated with that,and managing a property from a distance etc.
    Will the rent you can achieve cover mortgage payments which could be higher than at present on a BTL as well as covering running costs and management costs etc


    Like the others have said....make the phonecalls and work out the costs for the whole venture to see if its worth it for you.
    Changing to a BTL or obtaining permission to let is jusT one of many factors/costs to consider when renting your home out.
    frugal October...£41.82 of £40 food shopping spend for the 2 of us!

    2017 toiletries challenge 179 out 145 in ...£18.64 spend
  • LEJC wrote: »
    assuming you go down the route of renting out....have you also looked into the costs associated with that,and managing a property from a distance etc.
    Will the rent you can achieve cover mortgage payments which could be higher than at present on a BTL as well as covering running costs and management costs etc


    Like the others have said....make the phonecalls and work out the costs for the whole venture to see if its worth it for you.
    Changing to a BTL or obtaining permission to let is jusT one of many factors/costs to consider when renting your home out.

    Yeh I'm currently working through all associated costs, the rent I would get would cover an interest only mortgage (even with an increased rate), would struggle to cover the repayment aspect too though. thanks for your comments.

    Anyone else know about the question in the Original Post?
  • AndyT678
    AndyT678 Posts: 757 Forumite
    Part of the Furniture Combo Breaker
    Manil wrote: »
    Anyone else know about the question in the Original Post?

    Only your mortgage lender!
  • xylophone
    xylophone Posts: 45,426 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    A year ago....http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10418580/Lenders-crack-down-on-accidental-landlords.html

    "HSBC allows residential mortgage customers to stay on their existing rate if they rent a property for 12 months or less. If the rental period is longer, it expects customers to remortgage to a buy-to-let deal."
  • Yorkie1
    Yorkie1 Posts: 11,786 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    TBH I can't see them letting you go onto IO so don't get your hopes up too much (though I suppose there's no harm in asking).
  • bris
    bris Posts: 10,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    No chance of getting interest only, those days are gone.
  • Yorkie1 wrote: »
    TBH I can't see them letting you go onto IO so don't get your hopes up too much (though I suppose there's no harm in asking).

    Thanks for the response, so does that mean you don't think they will grant consent to let at all?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Switching to interest only no chance of that. As you'll still need to provide evidence of a repayment plan.

    With HSBC's policy there's little chance of a long term CTL. You will struggle to switch the mortgage to BTL given your current circumstances.

    Suggest you sell up and take the equity with you.
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