Problems porting our mortgage

clare81

feeling very stressed!!

Before deciding to put our property on the market I contacted HSBC about porting our mortgage. They agreed this was fine - no problems and that we could transfer over our exsisting mortgage product. 4 months later and we have accepted an offer on our property and agreed a price on the property we want. Completion date is set for the end of April.

I phoned HSBC today to get the ball rolling on porting the mortgage and they tell us we can not afford our current mortgage :mad: We have had the mortgage for 10 years and never defaulted on a repayment, we have no balance on credit cards, loans or overdrafts. We are in a better finiacial position that we were when we took the mortgage out 10 years ago but they now tell us that based on their new lending criteria we fall short on affordability by £13k. They are happy to give us 58k on our current product but we need to transfer across the 71k that we currently owe and have been happily paying without any issues. In panic I phoned Natwest to see what they could lend us and they said our affordability would allow borrowing of 113k so how HSBC can work out we can only afford half of that I have no idea.

I'm so stressed as obviously mortgages now are far more expensive and we have a good deal with HSBC. If they refuse to let us port our whole mortgage we are left having to pull out of our house sale and stay in our property for the next 15 years when the mortgage will cleared.

Does anyone have any advice on where I can go from here or how I can prove to HSBC that we are more than capable of paying our little mortgage? Is it legal that they can do this. How do they work out affordability these days - our monthly mortgage payments are less than 25% of our monthly income.

Thanks in advance for any advice.

VIGILANT22

Quote: Is it legal that they can do this.
Yes it is, it is their money.
Quote: I'm so stressed as obviously mortgages now are far more expensive
They have never been cheaper
Quote: and stay in our property for the next 15 years when the mortgage will cleared.
Easy, change lenders

clare81

our mortgage deal is 1% above the base rate for the term of the mortgage - I havent seen a deal as good as that!

herbiesjp

What are your two incomes?
Do you have any children?

What is current property value?
What is the new property value?

VIGILANT22

clare81 wrote: »

our mortgage deal is 1% above the base rate for the term of the mortgage - I havent seen a deal as good as that!

So if you want to keep that rate, you will have to stay where you are if they're not prepared to port.....but don't think it is going to stay at 1.5% for 15years.....basically you can't have your cake and eat it!

herbiesjp

VIGILANT22 wrote: »

..but don't think it is going to stay at 1 above base for 15years.....basically you can't have your cake and eat it!

If it is a lifetime tracker it will.

I think you mean whether BoE will be so low for the 15 years is a different matter

VIGILANT22

herbiesjp wrote: »

If it is a lifetime tracker it will.

I think you mean whether BoE will be so low for the 15 years is a different matter

yr correct...lazy posting...I should have said 1.5%....:)

clare81

our incomes amount to £23k. We have 2 children. The value of the new property is £135k and our old is £120k. The shortfall is coming from inheritance.

I'm well aware the BofE will put rates up again which is why I'm keen to keep our 1% above the base rate mortgage.

VIGILANT22

yes but when the base rate is back at 5% you mortgage will be 6%!..

clare81

Do you think I am completely stupid. I am well aware that our mortgage goes up and down with the base rate - in the last 10 years it has fluctuated between 5% and 1.5%. Obviously our current mortgage of 1% above the base rate is better than the latest deals of around 3% above the base rate.

My questions were regarding how the bank can agree to porting the mortgage and then change their mind as we get close to completion and how they work out such low affordability.

VIGILANT22

So if you hang on to this mortgage and it goes up to 6/7%...what will the payments be in comparison if you had moved to another lender to be able to get the extra 13k at say 4.5%....and in answer to your question.....Quote: "Do you think I am completely stupid"....As you have asked.......I do actually