Mortgage for a Flat to Let

Closed Thread
Page 2 of 2 FirstFirst 1 2
  1. #11

    Join Date
    Oct 2006
    Location
    Hong Kong
    Posts
    15,557

    If you don't tell your bank that you are going to let your flat out, then this could be a breach of your mortgage, and they could demand full repayment.

    Obviously, many people don't bother to tell their bank that they intend to rent the property out, regardless of the above.

    Last edited by pin; 10-09-2010 at 10:30 AM. Reason: typo

  2. #12

    Join Date
    Dec 2002
    Location
    θ–„ζ‰Άζž—
    Posts
    47,971

    HSBC does pre-approvals (not sure at what level they do this) but they did this 7-8 years ago and they also did this for a friend about six months ago.


  3. #13

    Join Date
    Mar 2010
    Posts
    238

    Just checked the HSBC website, apparently they still offer 70% for their Investor Mortgage. No mention of their interest rates or whether this could be combined with their other products such as Hibor or Deposit Linked though.


  4. #14

    Join Date
    Jun 2010
    Location
    Hong Kong Island
    Posts
    2

    Hi Darren,

    My friend has just purchased in a similar way to you and i have his contact details if you need them.
    I was speaking to him about an investment property mortgage in Singapore.


  5. #15

    Join Date
    Jul 2005
    Location
    HK
    Posts
    307
    Quote Originally Posted by Submariner:
    Incorrect. My bank sends me an annual letter requiring me to verify my residence at the property in question.
    I have never received such letters from banks I have used. Only a letter every few years from the Lands or Rates Department (can't recall which) asking if the property is let or not.

  6. #16

    Join Date
    May 2009
    Posts
    675

    I had to sign a letter stating I was living in my place and have been told I'll have that every year, but I was under the impression that that was only because my mortgage is above the usual 70% and so the HKMC are involved.


  7. #17

    Join Date
    Jan 2008
    Posts
    1,966

    It is the duty of a good agent to ask the landlord to get a no objection letter from the Bank, before allowing the tenant to sign the tenancy agreement.

    Quote Originally Posted by ArKay:
    I had to sign a letter stating I was living in my place and have been told I'll have that every year, but I was under the impression that that was only because my mortgage is above the usual 70% and so the HKMC are involved.

  8. #18

    Join Date
    Aug 2007
    Posts
    1,192

    Buy the property for your own personal use. Life will be simpler. If you subsequently decide to rent it out, well that is another day. One point, however, important for you to pin down is whether you can cover the mortgage payments irrespective of whether the apartment is rented out or not. This is critical for an application for a mortgage for own personal use to be a genuine one. The banks will look at your income/expenditure to assess this. If you are on the other hand buying to let then you will pay a higher mortgage rate.