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HSBC not understanding Shared Ownership
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I've just started the process with HSBC. Any update on this process?
They have their own way to calculate the LTV which is different from the rest of the banks. A bit scared that isn't going through...0 -
kingstreet wrote: »You're not trusting a sourcing system to be accurate on newbuild LTVs anything are you?
Mortgage Brain certainly isn't.
I double-check Trigold to ensure that even my name is right0 -
I've just started the process with HSBC. Any update on this process?
They have their own way to calculate the LTV which is different from the rest of the banks. A bit scared that isn't going through...I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
For shared ownership, HSBC uses the total value of the property for 'value', not the share that is being purchased. Therefore, buying a 60% share and putting down 10% of 60% (i.e. 6% of total value) as deposit would require a loan of 60% - 6% = 54%, against the total value of 100%. The LTV ratio is therefore 54/100 = 54%, which will get you the best rates on the market!0
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Pinballmachine wrote: »For shared ownership, HSBC uses the total value of the property for 'value', not the share that is being purchased. Therefore, buying a 60% share and putting down 10% of 60% (i.e. 6% of total value) as deposit would require a loan of 60% - 6% = 54%, against the total value of 100%. The LTV ratio is therefore 54/100 = 54%, which will get you the best rates on the market!
If that's what HSBC are doing then there has either been a misunderstanding with the internal product approval process or they have taken leave of their senses!
The "real" LTV in terms of HSBC's loan as a % of the asset security they have is 90%.0 -
Well as far as I can see HSBC will only lend to 85% on new build.0
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Well as far as I can see HSBC will only lend to 85% on new build.
Not sure on the shared ownership side.
In the past other lenders have based the product LTV on the overall price, not just the share price, although most I can think of changed this to the purchase share. So it's not totally impossible, but unless someone who works for HSBC is willing to say then we will not know for sure.
Oops I didnt mean to quote myself there?!0 -
kingstreet wrote: »You're not trusting a sourcing system to be accurate on newbuild LTVs are you?
Mortgage Brain certainly isn't.Brock_and_Roll wrote: »If that's what HSBC are doing then there has either been a misunderstanding with the internal product approval process or they have taken leave of their senses!
The "real" LTV in terms of HSBC's loan as a % of the asset security they have is 90%.0 -
Pinballmachine wrote: »For shared ownership, HSBC uses the total value of the property for 'value', not the share that is being purchased. Therefore, buying a 60% share and putting down 10% of 60% (i.e. 6% of total value) as deposit would require a loan of 60% - 6% = 54%, against the total value of 100%. The LTV ratio is therefore 54/100 = 54%, which will get you the best rates on the market!
If this is correct, I'm jacking in my 95% LTV SO mortgage at 4.69%, early repayment and all! It can't be right - by this maths, HSBC would offer me a 45% LTV at 1.24%.0
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