HSBC have created a crisis

Dan_1976

I think this is simple human error and missunderstandings!

Its shame but it does happen. I cant see on £80k that you would be able to get that amount of mortgages. Porting the product and doing what your doint now is the same think in money terms.

I think in 2009 taking on that mortgage with no buyer is a little risky and I would say your jumping in the deep end.

Good luck though

luckyfool

What is the value of your original/current house? You may well be able to switch this onto a Buy to Let product with a new lender as long as the loan to value is under 70-75%.

Of course BTL products are relatively expensive and will typically tie you in for at least a year, but it is one option if you were willing to postpone selling it for a while.

frontera2_2

Rick62 wrote: »

Like Getmore4less I'm totally confused what you thought you were doing. How were you expecting to both port a mortgage and keep the same mortgage on the old property?

Sorry, maybe I didn't make this clear.. In simple terms, this is what happened;

Me to Call Centre guy: Hello, We've found a house we really like but the vendor won't take it off the market because we have a chain. Is it possible to take a new mortgage for the new property and retain our existing one until we sell it?

Call Centre: (After consulting with colleagues and 40 minutes later) yes that's fine, your existing mortgage will move over to the new property (porting) with a new mortgage for the difference.

Me: Ok, so what happens to our existing property and mortgage, what rate do we pay on that?

Call Centre: Our Mortgage Service Centre will deal with that and be in touch soon.

Me: Ok, but just to be certain, it's ok for me to still retain my existing property until we sell and you'll let me borrow 90% of the full purchase price of the new property.

Call Centre: Yes that's right..

12 days later, they start to pull the rug from under our feet.

Just to give an update as well, HSBC have admitted that they have made a mistake. However, they have also indicated that they may be prepared to go ahead with this, and from an affordability perspective they are happy that we can afford the 2 mortgages. (This is according to one of their managers that I've been speaking with on an almost daily basis)

After going through a new application, their system has approved the total borrowing for the 2 mortgages, it's with an underwriter at the moment to rubber stamp it.

Fingers crossed!

Rick62

OK, so when the call centre operator said 'Our Mortgage Service Centre will deal with that and be in touch soon' what he meant was that he had not understood your (reasonably straightforward) request and he didn't have a clue - thats when you should have realised there would/could be a problem!

Luckily it looks like you may be ok - fingers crossed. Its good news they accept it was their mistake and that you pass the affordability for the two mortgages.

Frontera2

Just to give an update on this..

Had a call from the Underwriting unit at HSBC today.. The "Head of Department" has approved us having 2 mortgages at the same time, as they originally agreed to do!

Their only stipulation was that we need to sell as quickly as possible and that they would not agree to us letting the existing property out to fund the cost of the 2 mortgages..Although this is irrelevant as we had an offer made on our current place today!

Given that we want to complete on the new house, we are going to stick with the 2 seperate mortgages, as hopefully we'll only be paying for our current place for 1 month.

In a peverse kind of way, HSBC's screw-up has helped us out massively as, if I understand things correctly, there's no way they would (should) have agreed this in the first place, it's only because of their mistake which they admit, that they are prepared to let this happen.

All I can say is what a relief!