HSBC 5 year deal

mambo69

I am thinking about adding all my outgoings together (mortgage, loan and cards) and sticking it all into one pot, the 5 year 3.94% deal from my Bank, HSBC

My neighbours houuse is on the market at £130k, they have a conservatory i dont so even going to value of £115k at 60% ltv that gives me 69k total

I currently spend out around £850 per month across the lot, and over 15 year mortgage i could reduce it to around £500 and then put the difference into a savings pot and remove the needs to use any cards in the future

Firstly whats the chance of being accepted for it and secondly is it a good idea, given the fact that i fully understand that i am spreading my loan from 3 1/2 years to 15.

ginvzt

£130k on the market does not mean that this is the value of the house. The bank will decide what is the value.

Secondly, it will depend on your income - you haven't stated that. If the income is £15k, I guess there is no chance you will get offered £69k.

mambo69

Apologies, income is 25k per year

ginvzt

What about overpaying the £350 that you save this way? You would need to check the overpayment rules, but it would save you a lot in the long run!

slummymummyof3

You can only repay 20% of your monthly payment as an overpayment with HSBC. We have remortgaged with them and didn't have to have a valuation done (even though we came from another lender) - they took the value of an 'average' 4 bed house in the locality which gave us a LTV of about 30%.

Salary is not the only consideration with HSBC - you have to show your outgoings and any decision is based on affordability.

mambo69

If i stuck everything into one pot I have £1700 coming in every month and about £800 out plus any mortgage

Thrugelmir

How much do you owe on credit cards and other loans?

mambo69

around 12k loan, 5K cards.

Thrugelmir

mambo69 wrote: »

Firstly whats the chance of being accepted for it and secondly is it a good idea, given the fact that i fully understand that i am spreading my loan from 3 1/2 years to 15.

In view of your debt levels.

around 12k loan, 5K cards.

Unlikely that mainstream lenders will play ball.

Pay a visit to the other MSE boards where you'll receive the advice you really need (though may not wish to hear). As firstly you need to get to grips with your outgoings.