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2nd Mortgage with HSBC??
liverpoolcarl
Posts: 165 Forumite
Hi All,
In December I remortgaged my house away from Halifax to HSBC on a lifetime tracker. The house is realistically worth £230k and the outstanding mortgage amount is £150k, so 80k equity.
I have just been given first refusal to purchase a holiday home in the Lake District, small 1 bedroom cottage for £150 but I think realistically the real value is £130k.
I could raise 30k for a deposit via savings. My salary is £45k basic.
My question is would HSBC entertain me if I asked for a 2nd mortgage based on the above figures etc?
Thanks everyone..
In December I remortgaged my house away from Halifax to HSBC on a lifetime tracker. The house is realistically worth £230k and the outstanding mortgage amount is £150k, so 80k equity.
I have just been given first refusal to purchase a holiday home in the Lake District, small 1 bedroom cottage for £150 but I think realistically the real value is £130k.
I could raise 30k for a deposit via savings. My salary is £45k basic.
My question is would HSBC entertain me if I asked for a 2nd mortgage based on the above figures etc?
Thanks everyone..
0
Comments
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On £45k, your borrowing power is going to be around £180k for HSBC. As you already have a mortgage of £150k, that leaves around £30k available, so I doubt your proposition will pass affordability checks.
Other lenders have higher income multiples, but even that wouldn't be enough to get you another £100k of borrowing.
Can't see an answer for this, I'm afraid.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I thought as much..
The cottage is currently a Holiday Rental, if I was to keep it as a Holiday Rental and take it over as a business would I be able to secure funding on that basis?0 -
Possibly. You'd then be approaching them with a commercial lending proposition not reliant on your earned income.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Would you happen to know any rough guideline for the lending criteria’s as I know roughly it currently rents out for 20 weeks a year at around £300.00 per week, but it’s not actively marketed so this could be pushed up.
I am guessing not a lot of providers offer Holiday Let mortgages in the current climate though.0
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