Help...Mortgage problem

K_and_N

Hello,
We had a huge disappointment today and wonder anyone could give us any advice.
We had decision in principle from HSBC for 90% LTV and went to see the mortgage manager to make a formal application today. Half an hour into the discussion, he realised that we couldn’t get it because it’s going to be second home for me unless we put down 20% deposit. I’m buying this property jointly with my OH.
Does anyone know any lender who’ll be ok with second home at 90% LTV? Should we be looking for a broker?
Any help would be appreciated. I’m so upset because we did tell HSBC that I’ll keep living in my current property and at that time they said it’s ok. So we went on viewing properties and made offer. And now we don’t know what we should do.....Hmmmm...
K & N

kingstreet

My most recent experience of something like this was two years ago.

Applicant One had an existing property and mortgage bought in conjunction with brother and friend. Property couldn't be sold, so he had to remain party to property and mortgage.

Applicant One wanted to buy new home in conjunction with partner, FTB Applicant Two.

I found a lender who would give them a mortgage taking the current mortgage into account like a credit commitment, so the annual cost of the existing mortgage was deducted from Applicant One's income before the multipliers were applied. We managed to get the amount we needed. The LTV was never mentioned, but it was less than 90%.

We were also asked to confirm we accepted consent to let would never be granted for the new property.

I suggest you discuss this matter with a whole of market or independent broker as this is likely to not fit the square peg, square hole scenario.