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HSBC Revised Mortgage!!! HELP!!!!!
Comments
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When borrowing, the percentage lent is based on the value or the purchase price, whichever is lower. Often the valuation is never made above the actual purchase price - assuming full details of the purchase were correctly disclosed.
Btw, unless there was a queue at the door when you agreed to buy, the fact you paid £120k suggests that would be it's maximum value, perhaps less, despite what any valuer said.
The mortgage is only binding once they lend you the money (i.e. you complete on the property) - before that they can withdraw the offer, and many posts on MSE will demonstate that that is regularly happening at present."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
I love these threads when someone thinks they have been clever because they have got a discount.
fact is property is probably only worth £100k and the company would have probably let it go for that.
it was the guy who negotiatied with you who walked away the clever one, getting you to pay more than the property is worth but leaving you chuffed because you thought you had got a bargain. that is the job of good salesman.
regarding this actual £120k price, do you not realise that this is maximun value of the property now.
e.g. try putting up your property after you have bought it, after all you should make a quick profit as you got a bargain! see what happens when someone wants to buy, they can have your property at £141k or one for £120k (or even less) off the developer.0 -
mystickhan wrote: »My issue is this...
Why would i have gone all the way throught this knowing i would only get £90,000 regardless of the valuation.... Had i been told that i would only be able to get £90,000 regardless of the valuation due to the purchase price i would have known that it wasnt going to work out.
Like I said, you may have received misleading information from the lenders. So, complain about that, and they may compensate you for your expenses incurred. Alternatively, they may point you to where in their literature / on their website it says what they are now telling you explicitly, in which case they won't compensate you.No reliance should be placed on the above! Absolutely none, do you hear?0 -
mystickhan wrote: »Even so.. On all development paperwork it states purchase price as £141,995 and all my solicitors letters to. Breify spoke to my solicitor and he says there is no reason how that incentive price should bother HSBC as they have valued the property at £141,995 and thats they said subject to valuation on the mortgage which they approved.
When you got your mortgage offer, did you tell them that you were only actually paying £120k?...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
mystickhan wrote: »so if i have 20,000 deposit.... and that needs to be 25% of the purchase price
what would be the purchase ammount where my 20k is the remaining 25%???
If you can't work that out I'm not sure any lender should be giving you any money to spend on a house, nevermind £90k. No wonder the market is in such a mess.
It does worry me that you're taking on such a big loan and can't do simple maths. Are you sure you have the repayment calculations worked out correctly?0 -
When borrowing, the percentage lent is based on the value or the purchase price, whichever is lower. Often the valuation is never made above the actual purchase price - assuming full details of the purchase were correctly disclosed.
Btw, unless there was a queue at the door when you agreed to buy, the fact you paid £120k suggests that would be it's maximum value, perhaps less, despite what any valuer said.
The mortgage is only binding once they lend you the money (i.e. you complete on the property) - before that they can withdraw the offer, and many posts on MSE will demonstate that that is regularly happening at present.
as far as i can remember the hsbc terms and conditions of mortgage sent to me did contain a clause that mortgage offer can be withdrawn before drawndown of the mortgage amount at the discretion of hsbc bankbubblesmoney :hello:0 -
bubblesmoney wrote: »as far as i can remember the hsbc terms and conditions of mortgage sent to me did contain a clause that mortgage offer can be withdrawn before drawndown of the mortgage amount at the discretion of hsbc bank
Surely, though, you need a firm mortgage offer before exchange?No reliance should be placed on the above! Absolutely none, do you hear?0 -
Like I said, you may have received misleading information from the lenders. So, complain about that, and they may compensate you for your expenses incurred. Alternatively, they may point you to where in their literature / on their website it says what they are now telling you explicitly, in which case they won't compensate you.
This really is the answer for OP.
If he didn't tell HSBC about the incentive then he only has himself to blame. If HSBC didn't make it clear that all incentives should be revealed then there may be a legitimate complaint.
Solicitor should have told OP that he would have to report the incentive to HSBC (not to do so would make him a party to a mortgage fraud). I would have told my clietn that if the lender valued the proeprty at the higher figure then it was possible they would still accpet but Op shouldn't assume that would happen.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Like I said, you may have received misleading information from the lenders. So, complain about that, and they may compensate you for your expenses incurred. Alternatively, they may point you to where in their literature / on their website it says what they are now telling you explicitly, in which case they won't compensate you.
This really is the answer for OP.
If he didn't tell HSBC about the incentive then he only has himself to blame. If HSBC didn't make it clear that all incentives should be revealed then there may be a legitimate complaint.
Solicitor should have told OP that he would have to report the incentive to HSBC (not to do so would make him a party to a mortgage fraud). I would have told my clietn that if the lender valued the proeprty at the higher figure then it was possible they would still accept it but OP shouldn't assume that would happen.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
to get around such problems i specifically asked my solicitor that any contract would be subject to the mortgage being available, i had mentioned thisin my offer letters in writing as well by email to EA so that i would have a get out clause in case of such eventualities. also to avoid such problems i exchanged and completed the same day. in the worst case scenario i would have lost the survey fees / solicitor and searches fees but not much moreSurely, though, you need a firm mortgage offer before exchange?bubblesmoney :hello:0
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