Penalty for expired Consent to Lease

Victoria17

I might be paranoid but I have a question. Our HSBC Residential Mortgage 5 year fixed rate is coming to an end and we want to remortgage. We moved out of the property 3 years ago and let it with HSBC's Consent to Lease. But it was only valid for 12 months and after that we should have asked to have it extended (rarely granted) or we should have moved to a Buy to Let product. But the early repayment fee was ridiculously high so we just ignored everything until now. No more repayment fee soon so we can remortgage to Buy to Let. We've talked to a couple of mortgage brokers but the products they're offering us are not as interesting as a direct deal with HSBC (based on the rates I've seen on their website). So I want to talk to HSBC and see if I can remortgage with them but then they'd ask questions and realise we've been in breach of our contract for 2 years. Could they then penalise us in a substantial way or is the worse that can happen is them refusing us a remortgage for having broken the rules? I'm really scared if I come clean they're going to ask me to pay lots of backdated fees and penalty charges. 
Any experience or wisdom you could share? Thank you!

dimbo61

Well they can't ask for back dated fees for what ?
They have allowed you to remain on your residential mortgage deal.
You have paid the repayment mortgage each month Well Done.
What is your LTV ?
Do you tick All the boxes to get " direct deal BTL Interest only " mortgage with HSBC ?
When is your current deal up ?
Maybe wait till about one month before it ends before contacting them.
Have a back up plan if they say NO

Thrugelmir

Victoria17 said:

Our HSBC Residential Mortgage 5 year fixed rate is coming to an end and we want to remortgage.

Unless you make contact with the lender, you are going to default onto the SVR.  Which will be expensive. Going to have to bite the bullet sooner or later. 

K_S

@victoria17 Would you mind sharing the link where you can see HSBC's BTL products?

[Deleted User]

https://www.hsbc.co.uk/mortgages/our-rates/

They dont do many and they dont appear to be that competitive. 

If OP has seen 2 brokers they obviously know something that I dont but on first glance there appears to be better deals available elsewhere in the market

for example, 

2.19% for 2 year fix with £349 fee at 60% ltv

Pretty much any mainstream deal in BTL market at 60% is beating that at the moment

K_S

Deleted_User said:

https://www.hsbc.co.uk/mortgages/our-rates/
They dont do many and they dont appear to be that competitive. 
If OP has seen 2 brokers they obviously know something that I dont but on first glance there appears to be better deals available elsewhere in the market
for example, 
2.19% for 2 year fix with £349 fee at 60% ltv
Pretty much any mainstream deal in BTL market at 60% is beating that at the moment

@Deleted_User That's what I thought as well. The same for 75% LTV rates. I just recently did a resi-to-BTL remo for a client from HSBC to Santander and took his word that the HSBC direct BTL rates were too high. Just got a bit worried there for a second!

There might be something in the OP's case which rules out most mainstream lenders, but then that might well apply to HSBC criteria as well. You'll only know when you go to them for a remo.

Victoria17

https://www.hsbc.co.uk/mortgages/our-rates/?cid=HBUK:PHD:NA:P1:RB:L6:GO:XTR:14:MG:14:0119:001:M_Sitelink&ef_id=Cj0KCQiA34OBBhCcARIsAG32uvPyvQMl-no9JYqBbiHJnNrmqKJ8Xo4M-yZM_5fvGVChtcj3_h9-_9caAg3EEALw_wcB:G:s&s_kwcid=AL!5601!3!492924834458!e!!g!!hsbc btl mortgage rates&gclid=Cj0KCQiA34OBBhCcARIsAG32uvPyvQMl-no9JYqBbiHJnNrmqKJ8Xo4M-yZM_5fvGVChtcj3_h9-_9caAg3EEALw_wcB&gclsrc=aw.ds
Here's the link for the HSBC BTL rates someone was asking me for.
I think that 1.61% for a 5 year fix 75 LTV is really good, is it not??

K_S

@victoria17 You're probably looking at the residential rates (the first one). The bottom two are the BTL rates for a 5-year fix

Victoria17

Oh my word I'd completely misunderstood their tables. I feel silly now. Thank you so much for pointing out my mistake 🤦🏻‍♀️