HSBC lifetime tracker at base + 1.89%

pinkteapot

Phew!

Admittedly I've booked a viewing this weekend on a £475k house which would mean a £250k mortgage and therefore push us over 50% LTV, but it's a "view it and see if it's worth spending more than we were going to stick to" house.

We've got a self-imposed budget of £450k. The HSBC mortgage calculator offered us some ridiculous amount - most of our income would go on repayments! (And the calculator said that without knowing my job isn't permanent)

dimbo61

The 2.69% five year fix only needs one 0.5% BOE base rate rise to be a better deal !

inkiboo

dimbo61 wrote: »

The 2.69% five year fix only needs one 0.5% BOE base rate rise to be a better deal !

Depends how you view it. 1.89% is a good rate to borrow at. If the BOE rate rises, you will see the tracker rates go down.


Over the lifetime of the loan, fixing for a set period of time rarely works.

pinkteapot

I keep expecting BoE base rate to start rising, but the fact five year fixes are so low tends to suggest that the economists working for that bank don't agree with me....

dimbo61

If you are borrowing £225/250K I would still consider a long term fix as a good idea.
This gives you time to overpay for a couple of years or build up savings in offset accounts or ISA,s

pinkteapot

Heelllllpppppp!!

HSBC won't count my salary for the mortgage because I'm on a fixed term contract rather than a permanent job. :eek:

Total spanner in the works - we were planning on making an offer on a property tomorrow!

We'll get an appt with a whole of market broker on Saturday but to the brokers on the board, is it possible to get a mortgage at a non-outrageous rate for the following?

£230k deposit / £245k mortgage

Salary 1: £53,951 (permanent job)
Salary 2: £30,331 (8 months into a 2-year contract - employer has said they'll make me permanent but can't get that in writing yet)

If we'll be able to get something then we can still offer. We're looking at a really popular area and the house won't still be around in a week's time.

If there's a chance we can't get the mortgage at all though, we won't waste their time by offering.

I know it sounds stupid but it didn't occur to me that this would be a problem. I change jobs so often that a two-year contract is the same as permanent to me! I fully understand why underwriters don't see it that way though.

kingstreet

Post #11.

pinkteapot

You're sure? This is just HSBC's strict criteria I always heard about at work? Having a panic because we viewed an absolutely perfect house yesterday and are second-viewing tonight!

Should have done the full AIP process with HSBC earlier.

This is the same HSBC who gave me a 100% mortgage at 4.2x my salary in 2006. Oh well.

I think we'll probably pay the cost to use a broker for peace of mind! I've seen one quote a "typical" arrangement fee of £495 - not sure what the fee would be for us - what's the going rate?

amnblog

sounds like you need a broker today, not on Saturday

by Saturday you could have lost the property

I don't think you meant £230k deposit / £245k mortgage

fees vary between brokers, sounds like one we could do with no fee

pinkteapot

amnblog wrote: »

I don't think you meant £230k deposit / £245k mortgage

I did - £475k house, with a £245k mortgage.

HSBC have said that because they won't consider my income, the most they'll lend is £208k (giving us £438k to spend).

Spoken to a broker on the phone, seeing him Saturday (can't get in before that as working) but he's taken the basic details to start searching. He doesn't see a problem as the LTV is low.

Only question for us is how much more than the HSBC interest rate we'll end up paying.

My job should be made permanent in Feb-Mar so if we get a mortgage with no redemption penalty we could switch to HSBC then if they're cheaper.

If I'd thought to check with HSBC earlier we wouldn't have moved until I'm permanent! One of life's stupid moments!