Porting & Additional borrowing

Jimmy1977

Afternoon all,

First time poster here, but long time observer of the site.

I am contemplating a move to a larger property, and just wanted to hear from other people who have maybe been in the same position as me.

I currently own a 2 bed terrace in West London, with a realistic sale price of around £210k. My current mortgage is £128k. I have seen some 3 bed properties in my area for around the 230k - 240k mark, so would need an additional 20 - 30k. My original mortgage was for £150k, 50k of which being under guarantee by my mother. I am currently on a tracker deal, BR +1% for the life of the mortgage, so i'm quite keen to keep this (its with HSBC). My confirmed salary is £33k a year, although I do receive other payments of around £7k a year - however I know this cant really be taken into consideration.

I have just paid off credit cards, and a loan is due to finish in 3 months, leaving my only debt of another loan of £300 per month for the next 18 months.

I would like to port the current mortgage to a new property, and obtain a mortgage for the additional borrowing.

I know the proper answer is to speak to my bank (have requested a face to face meeting), however I just wanted to get a feel for what my chances could be to borrow the additional 20k/30k, and if anyone else has been in the same position.

Thanks very much,

Jimmy

Simon_gloster

It'll be very close for the £20k (your current mortgage amount you may struggle), any more than that seems unlikely. This iss on your basic salary alone.

If the £7k is bonus etc, it would need to be consistent. Lenders wont take 100% of other income. This extra income is key in this app.

When you meet them, ensure they key into the computer your income correctly. Nothing worse getting your hopes up to have the ripped away from you when you have to prove the income.

Thrugelmir

You'll be stretching affordability on your current salary.

BOE base is going to rise at some point.

Jimmy1977

Thanks for the feedback. Had the appointment today, and all went okay. Subject to clearing some outstanding loan amounts to clear all other debt i'll be able to get the additional funding.

manutd99

Hi Jimmy

Wondering if HSBC agreed to port the mortgage. I am currently with HSBC and the same deal as yours. I am thinking of moving and want to know if HSBC allow to port mortage when you move

Dave_Ham

Just in case you do not get confirmation, I am 99% sure this product is/was portable...

I would always double check with the bank itself though...

All the best...

Jimmy1977

Hello,

Yes the bank confirmed that the mortgage was portable (this was the BOE +1% guaranteed rate). I was offered this, and the additional borrowing at BOE +2.39%. One benefit of going with the tracker is that there is no limit or charge for overpayments of any amount, so I should be able to get this down quite quickly.

Cheers,

Jimmy

Jimmy1977

Just a quick update, had the appointment with HSBC last Thursday to go through the full application and got a phone call yesterday morning to confirm all approved by the underwriters. Certainly didn't expect it to happen so quickly, but all good.

Jimmy

harvey115

Apparently HSBC is all over the Newspapers showing they have done over 13,000 FTB mortgage since January. So not all are having problems.

Good stuff...

kidmugsy

"my only debt of another loan of £300 per month for the next 18 months": so what's the hurry - why not wait 18 months?

Jimmy1977

kidmugsy wrote: »

"my only debt of another loan of £300 per month for the next 18 months": so what's the hurry - why not wait 18 months?

Was in a situation where I could pay the loan off early, save some interest (around £200) and enable me to move when I wanted. I'd just prefer to be debt free (mortgage aside) and financially flexible.