Consent to let

churun

We have had a mortgage offer from HSBC for a house we are buying and are on course to exchange in a few weeks' time. Last week, my fianc!e was informed her work location has changed until October 2017 and our new house is no longer conveniently located for commuting purposes.


Is it possible to ask HSBC whether we can proceed with the mortgage but let the house out until October 2017? I have read through the T&Cs of the mortgage offer and can see nothing that explicitly forbids this, but is it prudent/necessary to obtain consent? Would there be cost implications for us i.e. a higher interest rate than we have already agreed?

foxy-stoat

I would pull out of the sale and buy next year or buy closer to work.

Your mortgage application needs updating and they will probably decline it now as the circumstances have or are imminently changing.

churun

Would they still be likely to decline even if the circumstances have changed only until October next year?

HappyMJ

churun wrote: »

Would they still be likely to decline even if the circumstances have changed only until October next year?

Do you know what it takes to be a landlord?

You could have a tenant in for a year and they leave in 12 months.

The next tenant you've got to give a minimum of 6 month tenancy to which would then go past October when you wanted the house back To get that tenant out could cost you the entire 6 months rent that you received. Many tenants don't really want to move in 6 months they do tend to want to stay for years so you've got to advertise the property as a short term let at a discount to the market rate.

I would pull out of the purchase, rent in the other area for whatever time you need then when you return to the area rent a property whilst looking for another house to buy.

foxy-stoat

churun wrote: »

Would they still be likely to decline even if the circumstances have changed only until October next year?

Yes because there would be no way to guarantee that October 2017 would be the month you move back in, also lenders on a residental mortgage do not generally give consent to let in the first 6 months, let alone straight away....but do not take my word for it, ask HSBC for their input.

Check out their Eligibility Criteria list from their Buy to Let Mortgage, I know you have applied for a Residental Mortgage but you will have a better chance of them granting you CTL if you meet all of whats on that list.

https://www.hsbc.co.uk/1/2/mortgages/buy-to-let-mortgages