HSBC not understanding Shared Ownership

macrae2100

Hi,

A friend is buying a new build shared ownership property. They are buying a 60% share. And will have a 10% deposit for that share (i.e. 6% of total price).

I found the best rate at the time was a 3.59% 2 year fixed for HSBC, (90% LTV). The closest rivals were Nationwide at 4.19%.

They've come back and said he could get a 2.49% 2 year fixed, with no fees! He's gone back to them time and time again, explaining that they've only got a 10% deposit, and they won't own the other 40%. 2.49 is a ridiculous rate for 90% LTV.

The person my friend saw, came back a couple of days later and said she's spoken with their financial adviser who confirmed the rate. Personally I don't think it will make it past the underwriters if they try to get the 2.49% rate. Or they'll get to a few days before completion and the solicitors will ask them for a £70,000 deposit.

How can HSBC not understand shared ownership? It's been around for years now.

So, does anyone know whether I'm right, or HSBC are?

ACG

Do HSBC even do shared ownership?

macrae2100

ACG wrote: »

Do HSBC even do shared ownership?

Yes. If you're a broker they'll be on Trigold / Mortgage Brain / *your sourcing software here*.

I work for a broker (doing admin), but as the best rate was direct that's where I sent my friend. So we're not advising.

Everyone in my office seems to think I'm correct, and HSBC have gotten confused somewhere along the line.

kingstreet

The pertinent question here is does HSBC do 90% on newbuild shared ownership?

macrae2100

kingstreet wrote: »

The pertinent question here is does HSBC do 90% on newbuild shared ownership?

Yes they do. Here's a small part of the KFI, which shows 3.59%. So I don't know how / why they are quoting 2.49% direct. When this IS the direct product, at 90% of the 60% share...

img42.com/GdvZs+

(couldn't post it in IMG tags)


Has anyone had a Shared Ownership mortgage from HSBC? And if so did everything go smoothly.

jayroc2k

Yes. I know someone who had their shared ownership mortgage with HSBC but at the time in 2010. it was specific to certain branches. you have to call them and ask which branch deals with it.

Unlike normal mortgages, they wont deal over the phone.

If you are anywhere are lucky as she was, they give you the wrong rate than what is advertised (a much lower incorrect rate!!)

My question is why are you considering a shared ownership scheme rather than help to buy?

If you are a junior employee and your salary will grow, then it makes sense to buy into a shared ownership scheme. If your salary has peaked, you will almost never afford the rest. In the case of the later, get the biggest flat/house you never have to move

macrae2100

jayroc2k wrote: »

Yes. I know someone who had their shared ownership mortgage with HSBC but at the time in 2010. it was specific to certain branches. you have to call them and ask which branch deals with it.

Unlike normal mortgages, they wont deal over the phone.

If you are anywhere are lucky as she was, they give you the wrong rate than what is advertised (a much lower incorrect rate!!)

My question is why are you considering a shared ownership scheme rather than help to buy?

If you are a junior employee and your salary will grow, then it makes sense to buy into a shared ownership scheme. If your salary has peaked, you will almost never afford the rest. In the case of the later, get the biggest flat/house you never have to move

Thanks for the input

IT would be nice if they honored the lower rate, but I don't think it'll get past the underwriters myself.

It's not me buying the house, but the person who is is early 20's and part qualified for their career, so will definitely be earning more in the future.

kingstreet

You're not trusting a sourcing system to be accurate on newbuild LTVs are you?

Mortgage Brain certainly isn't.

amnblog

Your friend will no doubt enjoy his 16 week 'romance' with HSBC as many others before him have done.

I don't believe there will be a 'marriage'.

Pear

So does HSBC do mortgage for shared ownership on a new build with 10% deposit?

The HSBC sales advisor who did the decision of principal said they do shared ownership mortgages with 10% deposit but I don't remember being asked if the property was a new build.

The sale advisor has booked as in with a mortgage advisor at another branch (as nothing available until next month for many of my preference branches). But I am now concern if I am wasting my time for having to take time off work and travel to a branch not near me, if I am going to be told they do not do shared ownership for 10% deposit on new build.

I did called HSBC mortgage customer service to check, but I was told they don't deal with shared ownership over the phone. I have to go in to a branch. But the branch HSBC sales advisor originally said I could get a decision of principal over the phone. So does that mean the 10% deposit for shared ownership might not be the correct information for a new build?!

Pear

Did your friend get the mortgage with 10% deposit on a new build property from HSBC?

Or has any one was offered and been successful?