HSBC Buy to Let mortgage switch issue

marflar

Hi - my partner and I are looking to purchase a house together. She already owns a home and we were advised today to start exploring the buy to let options with her current lender (HSBC)

She's just got off the phone with them, they've said they don't give buy to lets to people who are looking for a new mortgage, and only consider those who are "moving for work or moving in with a partner (who is the sole owner of the other house)"

Is this standard practice? Seems odd that our broker would advise this course of action if so

Just a point on my partners house:

She's lived there for 5 years and has an LTV of around 55% atm

kingstreet

So you're actually looking to let to buy her current home and buy a new residence together?

You have a broker who advised her to return to HSBC?

Was it suggested she ask about consent to let and has incorrectly asked about buy to let instead?

Don't forget the 3% SDLT surcharge if your partner is keeping her present home and buying another.

dimbo61

Many BTL mortgages are available via a broker
She is starting a business and needs to have all the facts
She also wants to buy a property to live in
One for the brokers

marflar

kingstreet wrote: »

So you're actually looking to let to buy her current home and buy a new residence together?

You have a broker who advised her to return to HSBC?

Was it suggested she ask about consent to let and has incorrectly asked about buy to let instead?

Don't forget the 3% SDLT surcharge if your partner is keeping her present home and buying another.

Yup we already have a CTL request on it's way to them - the broker adivsed my OH go to HSBC as she's locked in atm on a fixed rate which we'd look to buy out of to switch. She suggested switching to try and release some of the equity locked in atm, but my OH didn't even discuss this with HSBC, they just told her flat out that they don't let people have BTL's unless their circumstances (i.e. moving away to work) justify it, and only then in rare cases.

**sorry forgot to say - yes she's keping her place and we're buying a home together

Thrugelmir

marflar wrote: »

they just told her flat out that they don't let people have BTL's unless their circumstances (i.e. moving away to work) justify it, and only then in rare cases.

That is their internal policy. HSBC aren't targeting the BTL sector for mortgage business.