Buy second home BTL releasing equity

lazypanda

Hi All,
I hope you can help. We purchased our forever home in 2015 and shifted to new deal with same bank (HSBC) in 2017 when our promotional rate expired. We are currently in that 5 year fix. My husband started a business recently with his friends to do renovations and it's going well. We are now thinking of going solo and release some equity from our property to buy second property on BTL. Looking at Zoopla, our house should be worth £500k and current mortgage is at £280 left to go. We would like to take out between 70k -80k if possible.

Has anyone tried doing something like this with HSBC? Any hiccups we should know about? Is any of this even possible? Please let me know!!! Thank you!! 

Caz3121

will your incomes support £360k total borrowing?....if husbands business is main income rather than sideline, how many years accounts does he have or is he an employee of a limited company?

K_S

@lazypanda Off of the top of my head, I don't think HSBC allows you to take out additional borrowing on a resi mortgage for buying a BTL. Just give them a call and see if borrowing for that reason is allowed.

Thrugelmir

Caz3121 said:

will your incomes support £360k total borrowing?.

There'll be the BTL mortgage on top of this to consider. 

lazypanda

Caz3121 said:

will your incomes support £360k total borrowing?....if husbands business is main income rather than sideline, how many years accounts does he have or is he an employee of a limited company?

Thanks for responding. He's a director of his limited company. very much new so still sorting out the accounts.

lazypanda

K_S said:

@lazypanda Off of the top of my head, I don't think HSBC allows you to take out additional borrowing on a resi mortgage for buying a BTL. Just give them a call and see if borrowing for that reason is allowed.

Thanks for responding. That's exactly what I wanted to investigate a little more. I want to know if they even entertain releasing equity in this way! 

lazypanda

Thrugelmir said:

Caz3121 said:

will your incomes support £360k total borrowing?.

There'll be the BTL mortgage on top of this to consider. 

Yep. We're aware of that but fingers crossed it'll be based on rental income as well so can be managed

K_S

lazypanda said:

Caz3121 said:

will your incomes support £360k total borrowing?....if husbands business is main income rather than sideline, how many years accounts does he have or is he an employee of a limited company?

Thanks for responding. He's a director of his limited company. very much new so still sorting out the accounts.

@lazypanda That's likely to be an additional hurdle as HSBC require 2 years' accounts to consider self-employed income.