We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Need to rob the bank

strictwithmoney
strictwithmoney Posts: 53 Forumite
in Mortgages & endowments
To get the extra £50k .........


2 EAs had recently valued our house at £315k and £325k.
We have good credit record, never defaulted and only have credit card debt of £2k.

I went to HSBC for remortgaged loan of £120k.
The bank said the maximum loan we could get is £70k because DH's salary is £42k, exclude £3k bonus.

I told HSBC that our LTV is more than 60% and the bank said that they are not estate agent.

Is it just HSBC being fussy or other banks have the same approach?

Thanks god, we have 6 mths before our fixed mortgage expire, to give us more time to look at other financial institutes.
«1

Comments

  • CloudCuckooLand
    CloudCuckooLand Posts: 1,905 Forumite
    HSBC are well known for being fussy. Try somewhere else.
    Act in haste, repent at leisure.

    dunstonh wrote:
    Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.
  • ILW
    ILW Posts: 18,333 Forumite
    CloudCuckooLand wrote: »
    HSBC are well known for being fussy. Try somewhere else.

    It does appear you are looking for total borrowings of around £270k
    Very high on a £42k salary.
  • dunstonh
    dunstonh Posts: 120,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    2 EAs had recently valued our house at £315k and £325k.
    take off around 15% and you have the realistic value
    The bank said the maximum loan we could get is £70k because DH's salary is £42k, exclude £3k bonus.
    You have £120k and want a further £50k. That puts you at around 4.35 x salary. Thats high.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • strictwithmoney
    strictwithmoney Posts: 53 Forumite
    Sorry, I did not make myself clear

    Our fixed mortgage is £158k and will expired in 6 mths time. We just need £120k mortgage from HSBC because we will be putting down £38k cash to reduce the mortgage amount.
  • strictwithmoney
    strictwithmoney Posts: 53 Forumite
    dunstonh wrote: »
    take off around 15% and you have the realistic value
    You have £120k and want a further £50k. That puts you at around 4.35 x salary. Thats high.

    Sorry that is not what I mean ......

    What I'm saying is HSBC only allow £70k max, so I need to find another £50k (what can I do, but to rob the .......... :rotfl:)
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Not sure what advice you're after here. HSBC won't offer what you want so try another lender.
  • strictwithmoney
    strictwithmoney Posts: 53 Forumite
    _Andy_ wrote: »
    Not sure what advice you're after here. HSBC won't offer what you want so try another lender.
    I just want to know whether HSBC's approach is a norm or exception (being picky).
  • JasX
    JasX Posts: 3,996 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    what rate will you move onto after the fixed period ends? personally I'm desperate for my fix to end early next year to come off my 4.xx& fix and get onto the 2.5% SVR for a year or two :)
  • dunstonh
    dunstonh Posts: 120,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 29 October 2010 at 12:49PM
    £120k is less than 3x salary. That is easily within HSBC's criteria. So, there has to be something wrong somewhere.

    Maybe a decimal point in the wrong place, a reversed figure input or a misunderstanding or something you are not telling us with regards to other credit or the income is not salary but commission or whatever...
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Do you have high credit outgoings (loans, CCs, HP etc) - only thing I can think of is that you didn't meet affordability criteria.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.2K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture