Got mortgage offer, should I apply for another ?

Tom25

FTB, I applied for a mortgage on a 80% LTV but at the final stages of the process the underwriter said they will only give me 75%. As I had been assured 80% was okay up to this point and I had spent so much time waiting, I felt I had no choice but to accept and somehow find the 5% extra deposit.

The thing is, now that I have a 25% deposit I have seen better deals than the one I have been offered, the best being a 0.85% lower with HSBC saving me £2k (over 2 years) after cost of another valuation is taken into account.

What do I do? I have one offer which has gone to my solicitor, but if I can save £2k then should I go to HSBC to see if I can get that deal? also will the fact that I have already have a mortgage offer complicate the chances of new application being successful?

_Andy_

You can certainly apply although you'll then be starting the application process from scratch which isn't likely to please the vendor very much.

Tom25

_Andy_ wrote: »

You can certainly apply although you'll then be starting the application process from scratch which isn't likely to please the vendor very much.

That's not a problem because its a new build and so am not time constrained. Reading the HSBC tread I could be wrong... but I get impression HSBC application is quite quick ?







.

treliac

Tom25 wrote: »

That's not a problem because its a victorian flat conversion/new build and I am not time constrained. Reading the HSBC tread I could be wrong... but I get impression HSBC application is quite quick ?

Our completed application was confirmed as having reached HSBC on a Monday. They phoned with a confirmed offer on the Thursday!

The whole process was very quick. They certainly seemed efficient.

Tom25

Just had phone discussion with HSBC and it seems can only overpay by 20% on monthly payment Original offer I could overpay 10% of total loan per annum. So think I will be sticking with original deal after all as at end of 2 yrs my LTV will be much much lower if I keep overpaying , than I would be on HSBC

_Andy_

Could you (and I haven't done the sums to see if this is viable) go with the HSBC deal, which as you've said saves you £2k over the two years, then save what you would've overpaid, then make a large overpayment when the initial period is up?
May be worth doing the sums to see if it makes sense, given the potentially large saving.

Tom25

_Andy_ wrote: »

Could you (and I haven't done the sums to see if this is viable) go with the HSBC deal, which as you've said saves you £2k over the two years, then save what you would've overpaid, then make a large overpayment when the initial period is up?
May be worth doing the sums to see if it makes sense, given the potentially large saving.

Not sure, but be interesting to know from someone who is doing the HSBC Rate Matcher deal, would assume the overpayment limit is still 20% per month even after the initial period ??

_Andy_

No, once the initial period is up you will revert to the SVR, there are no limits on overpayments then (hence my suggestion about paying a lump sum off then).

Tom25

okay after 2yrs assuming I make the overpayments on both the saving is £1.5k on the HSBC deal... great what you can learn from people like you Andy Thanks

Tom25

Went to see HSBC mortgage adviser and have another meeting soon. She didn't think it was a problem applying for another either. One thing I am thinking - but which I forgot to ask... if HSBC use the same surveyor (e-surv), since I already have a valuation from them, would they need to do the survey again? I'll be annoyed if had to pay and they just produced the same report as the 1st application.