HSBC Mortgage Terms

SavvySaver24

We are first time buyers and I have been reading through all of the ts and cs for my mortgage offer. I will of course be running these by my solicitor too, but was just looking for first hand experience.

I very much know it is a case of like it or lump it and obviously the ts and cs can't be chsnged. But i have 2 main concerns.

Firstly it says we have to get written consent to make ANY changes (additions or demolitions) to the property. We know we want to add a porch to the front and maybe in a few years would want to add a conservatory. Is the written consent more a formality to ensure you don't do anything to decrease the value, or would they realistically ever say no to the above examples?

And secondly, it says you can't trade from the house or contribute to running a business. So two aspects here, does this include working from home? I work for a big Corporate - surely they aren't saying I can't WFH!? And secondly, does trade refer to actual business dealings at the house - i.e. clients comig to the house? My Partner used to freelance and may at sometime in the future want to start this up again. Would he not be allowed to?

davidmcn

No, no, and yes, respectively. All normal conditions that pretty much any lender would have, though in practice you'd have to be breaching them in a big way for anybody to care.

2bFrank

The conditions are usually just to cover the investment they have made.

Regarding alterations, they just don't want you to knock a great big hole in the wall and half the house falls down. We are getting our garage converted, and we have similar terms to you. They just wanted a email with details on what we are doing. Turns out they just wanted to check that we was using competent people for the gas, electrics and plumbing etc and not going to devalue the home (e.g turn a three bedroom house into one large bedroom or something).

Mainly that term is so that you don't run an actual trading business from your home. I work remote, my insurance, my leaseholder and my mortgage did not have an issue with this, the main quote from all three was, paperwork, telephone calls or computer work is fine.

Our neighbours across the road run a massage therapy from their converted garage and have people visiting throughout the day, they had to buy their leasehold and pay for extra insurance to allow for this, not sure what they did for the mortgage.