HSBC 2.3% tracker - limit of 5 mortgages?

rudeboymcc

HI. My variable mortgage with bank of scotland has shot up to 4.84 and I'm looking for a new one.

I called HSBC regarding their 2.3% 60%LTV tracker and was told that because I have more than 5 mortgages already (my business is renting out houses, I currently have 8) they will not offer me a mortgage.

I don't understand why as it's my business and it means I have more assets but anyway, does anyone know any similar offers on at the moment?

My property is my own home, is worth £1200000 and currently owe £620000 on it.

Any advice is appreciated.

rudeboymcc

so many views and no reply?

TEDDYRUKSPIN

Easy answer. I believe your main income comes from rental? In order for HSBC to pass even your mortgage over, they will want most of your rental collateral with them (BTL) as well. I believe nowadays, they stay away from clientele such as yourself for one main purpose. You are considered high risk.

I hope this helps.

Thrugelmir

rudeboymcc wrote: »

I don't understand why as it's my business and it means I have more assets

And lending money is the banks. So they can set the rules.

Simply put, to bring the leveraged property investor back under control. With a scenario of increasing rent arrears, rising interest rates and falling property prices. Many amatuer investors property empires will collapse like a pack of cards. As one non-performing asset will result in another having to be sold.

joepubli

It does seem a daft rule given the value of equity you have in the property. They have plenty of cover should something go wrong.

Perhaps you should ask the matter to be reviewed by their underwriter - you could write in providing full details. Chances are someone is following their rules which are designed for standard cases. Not many people have more than 5 mortgages.

May be for low margin business they just want standard cases.