HSBC - Consent to Let - Recent experiences?

dnw

Hi,

Was wondering if anyone has any recent experiences with HSBC issuing a consent to let and what their conditions are for doing so. I read a post from a couple of years ago saying that they require at least 15% equity (85% LTV) to do so.

I am considering remortgaging to HSBC but may need to move quickly due to job later in the year- if so, not being able to sell in the current market, I'd like to know my options in advance (i.e. if I can get a Consent to Let or will be forced to change deal).

FWIW I'd be taking a standard tracker mortgage with no ERC so it would be in their interests not to make me look elsewhere, if that enters into the equation!

many thanks in advance

DNW

debtuptoeyeballs

Hi there
Will you be buying a 2nd property or renting somewhere yourself once you move out?

dnw

renting at least until the market/location become a bit clearer. thanks.

debtuptoeyeballs

In that case, I wouldn't worry about it too much - as long as you have proper landlords insurance when you rent it out, and find good tenants. I was actually told by one bank off the record not to tell them if I rented a house out as they would move me onto a BTL i.e. more expensive product. You could always ask HSBC mortgage dept a hypothetical question if you are concerned about this

poppy10_2

debtuptoeyeballs wrote: »

In that case, I wouldn't worry about it too much - as long as you have proper landlords insurance when you rent it out

Your insurance will not be valid if you have lied about your mortgage. You need to get a consent to let, you won't necessarily have to change to a BTL mortgage.

Alf2009_2

Has anybody requested a consent to lease from HSBC recently?
I have lost my job and might need to relocate abroad for a couple of years. I do not intend to rent for long as ideally I would like either to come back and work in London or sell the property. However I have a great deal with them and though I am prepared to pay a little bit more, I don't want to lose my deal should I have the opportunity to come back to London soon.
I must say I feel trapped and can't decide what is best. From the bank's point of view, the risk with my current mortgage is far lower than with a standard buy-to-let as the current rate I am paying is extremely low (I have a tracker). Plus the LTV is very good (less than 50% even in this terrible market). The rationale for changing my mortgage from the bank's perspective would purely be to get a lot more money from me... Again, I am not intending to rent to make a profit but because I have to...

_Andy_

Alf2009 wrote: »

Has anybody requested a consent to lease from HSBC recently?
I have lost my job and might need to relocate abroad for a couple of years. I do not intend to rent for long as ideally I would like either to come back and work in London or sell the property. However I have a great deal with them and though I am prepared to pay a little bit more, I don't want to lose my deal should I have the opportunity to come back to London soon.
I must say I feel trapped and can't decide what is best. From the bank's point of view, the risk with my current mortgage is far lower than with a standard buy-to-let as the current rate I am paying is extremely low (I have a tracker). Plus the LTV is very good (less than 50% even in this terrible market). The rationale for changing my mortgage from the bank's perspective would purely be to get a lot more money from me... Again, I am not intending to rent to make a profit but because I have to...

You need to ring them and ask.

kekewan

Alf2009 wrote: »

Has anybody requested a consent to lease from HSBC recently?
I have lost my job and might need to relocate abroad for a couple of years. I do not intend to rent for long as ideally I would like either to come back and work in London or sell the property. However I have a great deal with them and though I am prepared to pay a little bit more, I don't want to lose my deal should I have the opportunity to come back to London soon.
I must say I feel trapped and can't decide what is best. From the bank's point of view, the risk with my current mortgage is far lower than with a standard buy-to-let as the current rate I am paying is extremely low (I have a tracker). Plus the LTV is very good (less than 50% even in this terrible market). The rationale for changing my mortgage from the bank's perspective would purely be to get a lot more money from me... Again, I am not intending to rent to make a profit but because I have to...

Hi,
I just read your post and find myself in a similar situation. I would appreciate it greatly if you could let me know how the bank responded to your request for consent to let. I am also with HSBC and thinking of travelling for about 18 months but don't want to lose a great tracker deal I have with them at the moment.
Thanks.

_Andy_

As per the above, you need to ring HSBC and ask, each case is going to be a little different.

geoffky

What makes you think you will not sell in this market? plenty of houses are selling..just not for what they were in 2007/8.

nickfife

I have just finished a conversation with a broker who made this suggestion.

I am relocating to Oz and he seemed to think this should not be a problem. I am also on a great tracker rate and don’t want to give this up, selling could prove difficult and I obviously want to achieve as much as possible from my investment.

The broker said that it would break FSA rules if they were to refuse a mortgage without reasonable cause, simply to put you on a more expensive product. It is to their discretion but if you are a loyal customer and have other products with them then it should be possible.

Really keen to hear more from others in a similar position and what outcomes you got if you did dare ask them directly?!