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2 mortgages, 1 flat!
Navmatic
Posts: 1 Newbie
Due to an admin error at HSBC, me and my sister have two mortgages for our flat. They are both full capital repayment mortgages for equal amounts. It is a result of our initial application for a part and part mortgage being refused.
I tried to rectify this situation almost immediately, but was told it was not possible to consolidate this. I didn't think it was too big a problem so I left it.
Now my sisters has very long commute we are looking to buy a second place, but because of our two mortgages my sisters credit score prevents her getting a second (technically third) mortgage. (Note I haven't checked my own score yet). HSBC Mortgage staff said it's against FSA rules to consolidate and it shouldn't be a problem in buying a second property but I am worried that on paper it looks like we remortgaged for 50% of the property value.
Even if this isn't a problem it seems I am going to shell out for legal fees because of the complexity of the problem (I conclude that it is a complex problem because HSBC staff struggled to answer this and I have received answers to my questions ranging from "we can do it no problem" to "it's not possible.
Can anyone help? Also is it even against FSA rules? I find it incredibly hard to believe that FSA rules would basically mean that they an admin error by a bank would mean me having to give up my 0.99% tracker mortgage (yep now you understand why I haven't just taken my business elsewhere)?
I tried to rectify this situation almost immediately, but was told it was not possible to consolidate this. I didn't think it was too big a problem so I left it.
Now my sisters has very long commute we are looking to buy a second place, but because of our two mortgages my sisters credit score prevents her getting a second (technically third) mortgage. (Note I haven't checked my own score yet). HSBC Mortgage staff said it's against FSA rules to consolidate and it shouldn't be a problem in buying a second property but I am worried that on paper it looks like we remortgaged for 50% of the property value.
Even if this isn't a problem it seems I am going to shell out for legal fees because of the complexity of the problem (I conclude that it is a complex problem because HSBC staff struggled to answer this and I have received answers to my questions ranging from "we can do it no problem" to "it's not possible.
Can anyone help? Also is it even against FSA rules? I find it incredibly hard to believe that FSA rules would basically mean that they an admin error by a bank would mean me having to give up my 0.99% tracker mortgage (yep now you understand why I haven't just taken my business elsewhere)?
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