V
vkurup
Guest
We were trying to sell ours and get another. Was in a chain of 3 - Renters - Us - Vendor going to new build. Surely should have been easy as either side wanted to go fast. All was agreed and then the Renters pulled the plug. So instead of letting it collapse, we went to Plan B - Release equity on ours and Rent it out, use the equity to put the deposit on the new property.. Simples.
Assume our property is 150K, our current LTV is about 75K i.e. 50%. Most BTL mortgages give upto 75% LTV, so we should qualify for 112K, this would give us an 'equity' of 37K. So called the helpful guy at HSBC. Apparently they cant do it, but I cant understand the logic. The options from them are
1) We can convert our existing mort i.e. 75K into a BTL mortgage. This is kind of pointless, since we dont get the equity and without that we cant go to the other place.
2) They will give us additional money upto 80% LTV. But if they do it, they cant convert it to a BTL as it has a new loan on it!!
We could go to another vendor, but wont get the kind of equity we need. We would really like to keep the current place as it is a renter's dream place and we can make a few quids on it.
Bloody heartache and I am not sure why HSBC cant see the big picture on this.
Assume our property is 150K, our current LTV is about 75K i.e. 50%. Most BTL mortgages give upto 75% LTV, so we should qualify for 112K, this would give us an 'equity' of 37K. So called the helpful guy at HSBC. Apparently they cant do it, but I cant understand the logic. The options from them are
1) We can convert our existing mort i.e. 75K into a BTL mortgage. This is kind of pointless, since we dont get the equity and without that we cant go to the other place.
2) They will give us additional money upto 80% LTV. But if they do it, they cant convert it to a BTL as it has a new loan on it!!
We could go to another vendor, but wont get the kind of equity we need. We would really like to keep the current place as it is a renter's dream place and we can make a few quids on it.
Bloody heartache and I am not sure why HSBC cant see the big picture on this.
