Let to buy process

aap_2

We have decided to let out our current house and move into another.

Let:
HSBC Bank value 250k. (Market value 275k)
Loan 85k
Release equity 187.5k and change to BTL. LTV 75%
Rent 130% of mortgage amount achievable

Buy:
Offer accepted 485k.
Hx AIP for joint mortgage 500k
Salaries 80k self +40k spouse
Mortgage needed 291k. LTV 60%

Questions:
1) Will HSBC revalue if we show similar properties selling for 275k?
2) I guess i have to get HSBC BTL approved before I apply Hx mortgage? Any idea how long this takes?
3) Will i be eligible for Hx mortgage just on my own salary?

Ps: Will be talking to the banks once i get back from my holiday.

simpywimpy

I think you may have to move out before you can get a BTL mortgage otherwise it a let to buy and based on income rather than rent which may then reduce the amount you can borrow on another?

somethingcorporate

I'd suggest the services of a good broker would help in your situation.

aap_2

It looks like a straight forward application to me, so not sure of why a broker is needed.

Just trying to get answers to my questions so i understand the process

amnblog

aap wrote: »

not sure of why a broker is needed.

There is plenty of time for you to found out.

aap_2

Well you are a broker so you would say that. ☺

All iam asking is the process, surely someone here would have done this already.

tvfreek

Comments such as those are hardly likely to engender assistance from the brokers on here

Perhaps have a go yourself and come back in 3 weeks and tell us all about it?

An experienced Broker will place this case in just a few minutes, it may take you a few weeks.

Your call.

amnblog

aap wrote: »

All iam asking is the process, surely someone here would have done this already.

Yes, a broker would have.

kingstreet

aap wrote: »

Well you are a broker so you would say that. ☺

All iam asking is the process, surely someone here would have done this already.

The questions you are asking you need to put to the lenders you intend to use for the mortgages.

HSBC doesn't publish its criteria, so you're hoping for someone with similar circumstances happening on this thread, who has also done an onward purchase with Halifax.

It might happen, it might not.

aap_2

It doesnt really have to be with HSBC, as Hx are ok with a BTL on our current house.

My question really is can they both be in process at the same time when the deposit for the new house is from the equity release on the current house. (Providing lenders criteria is all met)

kingstreet

Yes.

The two specific HSBC questions made me think you planned a new HSBC mortgage although it's already with them.

Obviously, the LTB will have to complete first to provide the funds for the completion of the purchase.