HSBC 2nd mortgage

LEP

Hi all,


Today I sent off a mortgage application to the HSBC underwriters after completing and passing a full application over the phone.

However I have concerns it will be declined due to the LTV as this will be an additional mortage to the one I have on my current property which I plan to rent out once I move (I have approval from my current lender to do this).

I have heard that the max HSBC will lend on a second mortgage is 80% LTV but I applied for a 85% LTV.

I fully explained the situation to the agent on the phone who asked me the how much I paid per month, it's value and outstanding amount of debt. I have about 35% equity in my current property

Question is: surely the computer would have said 'no' if the LTV on the mortage with HSBC was too high for my circumstances? Or does this sort of thing sometimes get missed on a full application before it goes to the underwriters?

Thrugelmir

Any degree of complexity would require review by an underwriter.

Are you releasing equity from your existing property to fund the deposit of the new one.

LEP

No, I will be using some of my savings to pay the deposit.

Oxid8uk

LEP wrote: »

I have heard that the max HSBC will lend on a second mortgage is 80% LTV but I applied for a 85% LTV.

I recently took a 2nd mortgage out with HSBC with my partner who also had a mortgage on a flat. We were told over the phone that we would need a max 80% LTV on my partners flat and HSBC would lend a maximum 85% LTV for the second mortgage. We thought fantastic but it wasn't until we went in branch to make the full application that we were told they would only lend a max 80% LTV for a second mortgage. :mad: Basically we were told incorrect info over the phone.

However, if you have 35% LTV on your other property they may well lend you 85% on the second property. But don't count your chickens!

LEP

Oxid8uk wrote: »

I recently took a 2nd mortgage out with HSBC with my partner who also had a mortgage on a flat. We were told over the phone that we would need a max 80% LTV on my partners flat and HSBC would lend a maximum 85% LTV for the second mortgage. We thought fantastic but it wasn't until we went in branch to make the full application that we were told they would only lend a max 80% LTV for a second mortgage. :mad: Basically we were told incorrect info over the phone.

However, if you have 35% LTV on your other property they may well lend you 85% on the second property. But don't count your chickens!

I think it was your post in another thread I read about this that raised my concerns.

I did the full application over the phone and was fully expecting it be sent to the underwriters.

I just cannot or don't want to believe the person/computer processing my full application would have missed this 'rule' before approving us.

Oxid8uk

LEP wrote: »

I think it was your post in another thread I read about this that raised my concerns.

I did the full application over the phone and was fully expecting it be sent to the underwriters.

I just cannot or don't want to believe the person/computer processing my full application would have missed this 'rule' before approving us.

I have to say the person we dealt with in branch wasn't too happy that we had been given incorrect info and took the name of the person we had dealt with over the phone. I have always wondered whether any knuckles were rapped.

You may be ok though if you managed to actually make the application over the phone. When we did the application in branch the mortgage advisor told us we had no chance getting 85% LTV before even inputting the info into the computer! When she did put the figures in just to check (exactly the same as what was inputted when doing over the phone) the application was instantly rejected!

LEP

Oxid8uk wrote: »

I have to say the person we dealt with in branch wasn't too happy that we had been given incorrect info and took the name of the person we had dealt with over the phone. I have always wondered whether any knuckles were rapped.

You may be ok though if you managed to actually make the application over the phone. When we did the application in branch the mortgage advisor told us we had no chance getting 85% LTV before even inputting the info into the computer! When she did put the figures in just to check (exactly the same as what was inputted when doing over the phone) the application was instantly rejected!

Perhaps they've changed their criteria or perhaps the fact I have 35% equity in my current property means 85% is acceptable to them.

I originally gave them all the info on the DIP call and then again on the full application a week later so they have twice had the opportunity to reject it on the LTV grounds.

Perhaps I am just worrying too much......my other half certainly says I am!

Oxid8uk

LEP wrote: »

Perhaps they've changed their criteria or perhaps the fact I have 35% equity in my current property means 85% is acceptable to them.

I originally gave them all the info on the DIP call and then again on the full application a week later so they have twice had the opportunity to reject it on the LTV grounds.

Perhaps I am just worrying too much......my other half certainly says I am!

Having 35% equity may well be acceptable to them. Best of luck, keep us posted on the progress.....

LEP

Oxid8uk wrote: »

Having 35% equity may well be acceptable to them. Best of luck, keep us posted on the progress.....

Seems like I was worring about nothing.......it got approved yesterday by their underwriters.

Oxid8uk

LEP wrote: »

Seems like I was worring about nothing.......it got approved yesterday by their underwriters.

Great stuff! :beer: