HSBC targets the FTB

thescouselander

I agree with Lokolo - you'd have to be mental to go for a tracker 4.09% above the base rate - thats a seriously bad deal IMO. If FTBs have any sense they'll stay well away.


Before everything went down the pan we got a lifetime 0.89% above base rate tracker from HSBC - now that's a good deal.

Jack_Johnson_the_acorn

Me and my partner where rejected by the HSBC..... @just under 90% mortgage, ended up going with Natwest who practically tried to bite our hands off... Must be a very strict internal scoring system with HSBC as our credit ratings are spot on. Just waiting for survey now... I have a horrible feeling that the bank will undervalue the property.... We shall see.

Graham_Devon

Jack_Johnson_the_acorn wrote: »

Me and my partner where rejected by the HSBC..... @just under 90% mortgage, ended up going with Natwest who practically tried to bite our hands off... Must be a very strict internal scoring system with HSBC as our credit ratings are spot on. Just waiting for survey now... I have a horrible feeling that the bank will undervalue the property.... We shall see.

Undervalue the property?

You mean you wish to overpay?

Jimmy_31

Graham_Devon wrote: »

Undervalue the property?

You mean you wish to overpay?

Thats the way i see it, id be praying for an undervalue

Jack_Johnson_the_acorn

Jimmy_31 wrote: »

Thats the way i see it, id be praying for an undervalue

No, because I'd rather not have to rely on parents for the gap in value, we have offered what we feel the property is worth to us, The sellers may not agree with the valuation and refuse to lower the price. Therefore we would possibly lose the house, I hope not, as it's an exceptional property.

macaque_2

reweird wrote: »

Super rates for our FTBs. Let's hope they take vantage of this as they're no excuses now not to buy if you want to.

£250m + 4.89% above base = 2000-3000 time bomb mortages

OptionARMAGEDDON

Jack_Johnson_the_acorn wrote: »

No, because I'd rather not have to rely on parents for the gap in value, we have offered what we feel the property is worth to us, The sellers may not agree with the valuation and refuse to lower the price. Therefore we would possibly lose the house, I hope not, as it's an exceptional property.

Alternatively, you could see it as it actually is... the bank are refusing to loan on an asset they know is worth less when emotion is taken out of the equation.

We bought 30% off original valuation. Ouch for seller, (repoed, what happens when you choose nice things over paying the mortgage). DONT fall in love with a property until your name is registered against it.

Jack_Johnson_the_acorn

OptionARMAGEDDON wrote: »

Alternatively, you could see it as it actually is... the bank are refusing to loan on an asset they know is worth less when emotion is taken out of the equation.

We bought 30% off original valuation. Ouch for seller, (repoed, what happens when you choose nice things over paying the mortgage). DONT fall in love with a property until your name is registered against it.

We offered £17k and then £13k less than asking price, which was eventually accepted. So we don't feel that we are paying too much, but thanks for the advice... I'm not looking at this purchase as an investment, it's a home to us.

OptionARMAGEDDON

Well, if you feel that way and the bank undervalue, its a case of meeting the difference out of your own pocket. We requested a change of surveyor PRIOR to surveyor due to the bad reports we had on valuation from the preferred surveyor. We also let the surveyor know our offer so they didnt overvalue the property so we would have an evidence base to go back to the asset management company with. Surveyors are increasingly coming under litigation cases for overvaluing property. They limited their exposure to this, we limited our exposure to a greedy asset management company. Win win.

We offered £17k and then £13k less than asking price, which was eventually accepted.

On what original asking price? Quite good if you are offering on a 100k property, not so great if its an offer on a 500K one....

Graham_Devon

Jack_Johnson_the_acorn wrote: »

No, because I'd rather not have to rely on parents for the gap in value, we have offered what we feel the property is worth to us, The sellers may not agree with the valuation and refuse to lower the price. Therefore we would possibly lose the house, I hope not, as it's an exceptional property.

The sellers will refuse, or the bank will refuse?

If the surveyors suggest the house is worth less than what you request for a mortgage, then the house is worth less and you would have to decide whether to overpay, offer the valuation, or walk away.

You said the surveyors a minute ago, now you are saying the sellers.