HSBC mortgage and owning 2 homes

LYT_2

Hi
We are applying for a mortgage with HSBC. When we did the questionaire over the phone we told them that we would raise the cash for the depposit from the sale of our current home. Unfortuately the offer on our home has fallen through and we need to proceed with the purchase of our new home asap. We can do this regardless from pulling out available cash from our current flexible mortgage, plus some savings and a family loan until we sell our house.

Questions:
Are we better at this point to tell HSBC that the source of the deposit has changed?
Does anyone know if HSBC have a problem with lending when there are 2 homes? Even if we are entirely confident that we can afford the exposure of 2 mortgages and have ample disposable income after all bills are paid in said scenario.

Thanks
LYT

beecher2

You'll have to tell them straight away about the change of cirumstance, as they'll need to take the second mortgage into account when working out affordability - it doesn't matter if you are confident or not, they need to be!

LYT_2

And do you know if HSBC at least accepts to have customers with 2 mortgages? Obviously we know that some lenders are more flexible than others but not sure what HSBC is like.

Yorkie1

You'll also need to declare the loan from family to them as part of the change in circumstances.

Oxid8uk

My partner and I have a mortgage each (one on a consent-to-let, one our current home) and HSBC have agreed to lend us a mortgage to purchase another property. Like you we were going to use the proceeds from the sale of our current home as a deposit on the new one but haven't had any luck and therefore have taken a family loan to bridge us til it has sold. We have now exchanged contracts and get the keys on Friday (hoping nothing goes wrong between now and then!!).
We were upfront with HSBC from the very beginning and they based the amount they would lend us on affordability of paying two mortgages. We also told them about the family loan and this wasn't a problem.
You will need to have 20% equity in both your other properties though, and they will only lend you 80% LTV.

mp80

I applied for my new mtg with FD (a subsidiary of HSBC) with the view of keeping my current home and selling or renting it out later, they had no problems with it, so I will have 2 x residential mortgages! Just need to make sure I convert the building insurance to cover extended unoccupied periods (> 30 days) until I sort out what I am doing with the gaff. Just be up-front and then you don't expose yourself to what could be mortgage fraud; if it falls through then well, at least you're not having to worry about the finance of it all!

gemma.zhang

Same here. Applying Hsbc mortgage, current home with Natwest, not sure whether to sell or let out. They asked a few questions on the phone regarding if I don't sell, would I be able to afford it. I went through rental figure with them, approved subject to survey now. Total took less than a week. Waitin for survey result now.

Do tell them, don't think it matters to them as long as you have other ways to raise the money if you want to keep your current house.

LYT_2

Just to close the loop on this one...we did tell HSBC that the sale of our house had fallen through but that we could still raise the deposit. They didn't make any difficulty and we since have completed on our purchase and have moved into our house...we have also sold our previous house so it all fell into place in the end! Thanks for the input to everyone