Moving House, Mortgage Issues

djamesphoto

Hello,

Right so we're in a house that's sold for

£380,000

currently outstanding mortgage is: £137,000 with HSBC

moving to a house that sold to us for

£360,000

we asked HSBC to move the mortgage over and increase £20,000 on for renovation etc.

They out and out refused, even when we asked to forget the £20,000 and just move the mortgage as it is (basically, in my eyes, admin work).

Any idea why they would refuse this? being as if we didn't pay for whatever reason there's a £200,000 equity in the new property as well as £160,000 projected in my fathers pensions fund (due to mature in 13 years).

Basically MORE than enough to pay for it

any help is hugely appreciated,

David

_Andy_

Hi David

Welcome to MSE

Moving the mortgage is treated as a new application thus they can refuse it.

The refusal could have been on grounds of income, affordability, scoring, or adverse credit (or a mixture thereof).

What feedback have they given you as to why it was declined?

djamesphoto

Thanks for the reply

There's a default from 5 1/2 years ago (6 years wipes it from the file), so Halifax refused straight away but the manager at Halifax and HSBC (the person trying to get the mortgage through for us) both said they couldn't understand why it wasn't going through.

They've worked out that by us moving we'll be saving a minimum of £850 a month straight away! so they know we can afford it more than with our current house if anything

_Andy_

Is the mortgage interest only or capital repayment?
how much was the default for and is it satisfied?

djamesphoto

Interest only
£2,500 and it is satisfied

thanks again

_Andy_

What method of repaying the capital did you state (e.g. ISA, etc.)?

Fairdo_2

_Andy_ wrote: »

Hi David

Welcome to MSE

Moving the mortgage is treated as a new application thus they can refuse it.

The refusal could have been on grounds of income, affordability, scoring, or adverse credit (or a mixture thereof).

What feedback have they given you as to why it was declined?

Or Property security or construction. (Obviously not in this case, but that can also have a bearing with a lender).

Peter_L

Not that I think it will be in this case but Intelligent Finance will not Port Mortgages over IF your name already appears on the mortgage deeds - if you port BEFORE you change the deeds into your own name then that's ok ??? Had a long conversation with them but apparently 'computers says no' because that's on the top of their 'criteria list' and are willing to lose a customer rather than port AFTER the name has already been changed !

djamesphoto

_Andy_ wrote: »

What method of repaying the capital did you state (e.g. ISA, etc.)?

projected pension fund

thanks to all for this, very useful!

Conrad

Well James, it could be any or a combination of hundreds of differnet factors.


Those branch managers that 'cannot believe' the case was declined - I see this comment almost daily on here. I suspect Bank staff don't want a rowdy client in thier officers so they tend to show you sympathy but in reality they will experience declines daily and likely know full well why it's declined.

Some lenders are more understanding and flexible where defaults are concerned, particularly a couple of small building societies - ask a decent broker you know for advice.

_Andy_

I think you need to go back to HSBC and establish exactly what the issue is.
It could be the repayment method, the adverse or possibly affordability.