HSBC Mortgage or Broker?

20vt-rs

Guys - Just a bit of advice needed on the HSBC mortgage products please - I'm in the process of applying and discussing with them, they have run the details through and my valuation is needed to be by a visit and not automated on their system. They have said that I need to pay the booking and valuation fees up front as well before it's all a done deal.

So I am slightly nervous now, as even if the valuation is only £2k lower than i think, I will loose out on the 70% LTV product as it'll tips me into the next one @ 80% LTV. My concern is if this happens in a few weeks when it's all organised, alternative products available now may vanish and I'll really loose out.

So would you guys recommend switching to a fee free product and hedging bets, or applying for the highler LTV product knowing that it'll be valued within that safely? Both attract the same tracker rate.

Thanks...

adindas

Simon11 wrote: »

I've just signed the paperwork to agree to a HSBC Lifetime Tracker which is2.29% plus 0.5% without any up front fees. I'm a FTB buying a place under £125k with £60k deposit.

I haven't looked at the restrictions, but is that product not available foryourself?

This HSBC deal which is available for 60% LTV only, has been withdrawn as far as I am aware.

But Britannia life time tracker 60% LTV offer 2.09 + 05% = 2.59% BOE (current account exclusive) beat HSBC 2.79% Life time tracker.
Also there is not any product/booking fee. HSBC will charge you £599 product fee.

It is available here:
http://www.britannia.co.uk/_site/channels/mortgage/products/current-account-lifetime-tracker.html

Britannia/coop current account exclusive offer but it is dead easy to get current account with them.

Thrugelmir

20vt-rs wrote: »

So I am slightly nervous now, as even if the valuation is only £2k lower than i think, I will loose out on the 70% LTV product as it'll tips me into the next one @ 80% LTV.

Wait a couple of months and pay the mortgage down further. Or use some savings to reduce the amount you wish to borrow.

20vt-rs

Thrugelmir wrote: »

Wait a couple of months and pay the mortgage down further. Or use some savings to reduce the amount you wish to borrow.

I'm actually thinking of doing that to be honest, however it's all dependant on the valuation. So rather than risk the set up fee and valuation fee I'm going to see if I can swap to the fee free product and see what happens. Not willing to risk over £700 to get a poor valuation!

20vt-rs

Ok, I've been doing to sums in my head and checking online, my current LTV based on my estimate valuation is 69% - I've done some checks on the likes of zoopla etc and my house is being valued at around £10k lower than this (interestingly enough next door is £5k more but I know for a fact mine is in a better state and has additions they dont!). There are not many sales in my area, and the only benchmark is a house up the road for sale currently (near identical) for £200k.

So would I be right in thinking that a valuer would most like value my property lower than the house up the road that has been valued by an agent? In which case I'd be tipped into the 80% LTV product. I'd obviously love to get the 70% one, but I will kick myself if after the valuation down the road I have to take the 80% product and it has gone or gone up in interest rate.

My gut feeling is now apply for the 80% LTV and secure that one, if for any reason the valuation comes back good then see what 70% LTV products are around then. Is this a good approach?

20vt-rs

What would you do!?:p seriously, after some inspiration or advice if my gut is wrong .. Thanks

adindas

20vt-rs wrote: »

What would you do!?:p seriously, after some inspiration or advice if my gut is wrong .. Thanks

20vt-rs
I will say do not be pessimistic. But provide a back up plan.
If the valuation is lower than the offered price then try to negotiate with the vendor using this estimation..

If he does not budge then you will have to go the next level oft LTV which is normally LTV 80%. Also try to shop around you might get another lender who offers lower interest rate fro this new LTV.

Good luck. House buying is indeed stressful ....

20vt-rs

Thank you for your input adindas I'm actually remortgaging and not buying... I have dug out my paperwork from 5 years ago last time I remortgaged and the valuation then was £200k. So I'm hoping it hasn't gone down since...

20vt-rs

Well just an update, so far so good, mortgage has been approved by HSBC and survey is next on the cards. Fingers still crossed mind you until it's all done and dusted!

A quick question regarding my old mortgage, the paperwork states that there is an ERC if paid in full on or before the 30th of the month, so I should be instructing the HSBC to start and pay off the old funds on the next day after the 30th? I guess this is something I should tell the legal people actually thinking about it.

GMS

Ask the conveyancer to set the completion date for the day after and to request a redemption for the day after.

If you are talking about 30th of this month I wouldn't worry, not going to complete by then anyway.