Help: Buying a new home-renting existing one..

madhusudhan

My current mortgage on flat is with HSBC and I’m currently planning to buy a new house. The flat is going to be rented out. HSBC is ready to give me a deal on new property but asking me to take the current mortgage to another lender as it won’t meet their criteria.

My questions–

1) Can I keep my existing mort with HSBC on residential rate? (On my prev posts, one indicated that I should get consent from the current lender to let my property). Do the bank give consent to let the property without changing the mort from residential to buy-to-let?

2) Should I move from the current mortgage if I’m taking a new one from some other lender?

3) What is the best way to persuade the current lender to keep the current mort on res rate?

4) If I take my current one and new one to another lender, what are the chances I can get both on res rates?

(On the whole, I’m trying to keep both the properties on res rate!)

Advance Thanks for your help
/M

lisyloo

1) Sometimes lenders do, sometimes they don't.
The only way to know is to ask them. Lenders can set their own policies on this sort of thing.

2) My own opinion is that you should weigh up the costs and see who is giving you the best deal.

3) I think this is unlikely unless they will just allow you to change the mortgage with an admin fee (which some lenders do).

4) I would say it's unlikely.

On the whole, I’m trying to keep both the properties on res rate!

Nothing wrong with trying/asking, but your business plan should be based on realistic (or even conservative) assumptions, so you should assume BTL rates.