Any advice whether to choose HSBC or Natwest for a mortage.

Gpmanchester

HSBC offer the most competative and best Lifetime tracker we can find for our circumstances. However having read a few reviews about the length of time it is taking to process mortage applications and the difficulties posed by HSBC only being willing to work with certain solicitors I'm really worried about using them. We have a mortage in principle from HSBC and Natwest and wondering whether to go with Natwest, as though their product is more expensive and doesn't meet our requirements as well I think Natwest may have quicker processing times. We have seen a property which we really like and will need to move fast to secure it, has anyone had good or bad recent experiences with HSBC or Natwest.

GMS

Gpmanchester wrote: »

We have a mortage in principle from HSBC and Natwest and wondering whether to go with Natwest, as though their product is more expensive and doesn't meet our requirements as well

Does this not answer the question? Why go for a product you don't want?

kingstreet

There's no guarantee NatWest will process the application fast enough to warrant taking the worse deal.

HSBC is now dealing through any CQS solicitor, within limits, so that should have less impact in future.

kingstreet

Are you planning to have another property and mortgage in the background?

Saw thread on CTL on HBR&S.

Gpmanchester

Yes, my husband until recently was still working in the city where we used to live and he has been living at our old house during the week. We only have a small mortage on this property so can pay it off and can rent it out but this has tax implications. So may consider requesting permission to let to see how renting it out goes and then get BTL. The lenders we've spoken to don't seem to be perturbed by us having another small mortage on another property though the monthly payments count against affordability of course.

GMS

What percentage deposit do you have for the new property?

You will have to pay tax on the rent regardless of whether you have consent to let or a buy to let.

Have you considered refinancing to a buy to let on the current property in order to raise further funds for a deposit on the new purchase? You could offset mortgage interest against rent for tax purposes and look to get a better deal on the new property by virtue of having a bigger deposit.

Gpmanchester

We have a 45% deposit for the new property if we don't pay off the mortage on our old house. We have one of those extremely low trackers on our other property so if allowed CTL, payments will be very different to the cost of a BTL rate.

ACG

Speak to the companies involed, run your scenario by an underwriter if possible and ask if its something they would have issues with.

As an advisor thats one of the things i would be doing.

Ask what their processing times are. When ive worked for a mortgage company we were not allowed to lie/mislead so we would always give the correct turn around times at that point in time.