HSBC Policy for Self Employed

Marcello

Hi All,

Looking to remortgage to HSBC, currently OH and I have banked with them for 20 years, I know this doesn't mean much these days but we are known to them.

My question is, I am employed full time in my current role for several years and will am the main income provider. Using the HSBC website how much can I borrow calculator indicates an initial lending of £180k, this works fine as we currently owe £171k. This is if I include my OH's income as well as my own. OH is self employed working for her family's business, however if I remove her from the calculator we can only borrow £144k based on my income alone.

The reason for the post is my wife has been self employed since April, do they only include a second income if the self employed person has only been so for a few months? I've read other posts where HSBC won't include a second income for things such as temporary contracts, is this a similar scenario?

kingstreet

AFAIK she'll need to have been self-employed for two years or more before her income will be taken into account.

Marcello

Thanks Kingstreet, suspected as much

RickyC_IFSWP

Yes, minimum 2 years accounts is standard for self-employed individuals these days.

Mortgage_Mark_2

I think HSBC is actually 3 yrs but yes, either way you will need at least 2yrs of company trading accounts to verify.

Marcello

Thanks for the replies all, looks like a case of sticking on my Halifax SVR for longer until I a pay more down.

All this started after requesting Halifax for a valuation, as they were using general rates for the area from post housing price crash. Got them to do a drive by after much effort, and the value came back as £200k, several houses in my row of a lesser or same spec are getting valued at £215-£220.

I know Agents valuations compared to lenders rates are poles apart, it just grates that they are undervaluing and denying me an 80% LTV

kingstreet

Marcello wrote: »

Thanks for the replies all, looks like a case of sticking on my Halifax SVR for longer until I a pay more down.

All this started after requesting Halifax for a valuation, as they were using general rates for the area from post housing price crash. Got them to do a drive by after much effort, and the value came back as £200k, several houses in my row of a lesser or same spec are getting valued at £215-£220.

I know Agents valuations compared to lenders rates are poles apart, it just grates that they are undervaluing and denying me an 80% LTV

Standing instructions from our BDM on a product transfer are to pay the extra for an internal inspection, as you're more likely to get what you need, especially if you've done stuff to the interior which can't be seen from outside.

Thrugelmir

Marcello wrote: »

OH is self employed working for her family's business, however if I remove her from the calculator we can only borrow £144k based on my income alone.

No possibility of a contractual arrangement?

Marcello

It may be an option, would that change the situation?

Thrugelmir

Marcello wrote: »

It may be an option, would that change the situation?

Well she would be an employee with a guaranteed income.