Mortgage on property planning to split

Bokonon

Hi,

I'm trying to buy a property that was originally built as two attached properties. It's remained as two, with separate address, entrances and utilities etc, but all under one title.

The plan would be to sell the small part off in time and then pay part of the mortgage off.

I'd got a mortgage agreed in principle from HSBC, but on going through the next stage of the process explained that it was 2 connected properties. They refused point-blank to offer a mortgage saying that they never offer anything that isn't a simple, single property with no annexes and all but hung up on me.

Does anyone have any knowledge or experience of this? Is this normal? Is it going to be impossible to get a mortgage purely because of its type?

Also, would other lenders have an issue with me selling part of it off down the line for any reason? I've been assured by my solicitor that it's straightforward enough from their perspective.

I'm currently a bit bemused and very annoyed. It's our dream house and slipping away...

Dave_Ham

This will be incredibly tricky and not something you are going to arrange yourself.

Speak to a broker asap..

Bokonon

OK, thanks.

Which part is the tricky part though? Getting the mortgage or arranging to sell part?

Dave_Ham

Mortgage part in advance of title split.

Or selling within 6 months of the purchase.

Dave_Ham

Additionally and so you are aware, the product/rates a broker may find are not going to be HSBC rates..

Bokonon

As in better or worse? Is it still true that you can get better deals through a broker than advertised?

densol_2

Bokonon wrote: »

As in better or worse? Is it still true that you can get better deals through a broker than advertised?

Worse ! HSBC pick the creme de la creme of customers with easy properties ( low risk ) and fantastic credit history ( low risk ) and good affordability ( low risk ) .... Hence they offer some fantastic rates for a selected few

Dave_Ham

You need to quickly stop worrying about rates or select a different property. This will be a case of where will you be able to achieve rates and are they affordable and the purchase worthwhile.

Dave_Ham

To answer the question completely, the rates will not be as attractive

Bokonon

densol wrote: »

Worse ! HSBC pick the creme de la creme of customers with easy properties ( low risk ) and fantastic credit history ( low risk ) and good affordability ( low risk ) .... Hence they offer some fantastic rates for a selected few

In fairness, I have only been offered the best advertised rates so far by a couple of lenders. My affordability and credit rate are both good though, luckily

Mortgage_Mark_2

A rate is not attractive at all if you can't actually get it. That's looking at it completely the wrong way when you have an unusual property like that. You might well find it unmortgageable in the conventional sense.