Please help!! stuck in house we don't want-can't move mortgage

pigzy

We bought a flat in January this year and now need to buy a house as have "neighbour issues". Our current mortgage is with HSBC and is portable (or so we thought). It is a 100% mortgage and we would need 100% again because we haven't saved any money really since Jan. HSBC are no longer doing 100% mortgages and so they've said we can only have 90% and need to find 15K to pay 10% deposit (NOT going to happen!!). I don't understand if we have a 100% mtg with them anyway why they are being awkward because the other option is that we get a loan from another bank so they lose out on some of our custom. It's not as though we're asking for anything extra just what we already have but on a different house!!
Does anybody have any ideas? can i argue with them? Is there a mtg company out there that will pay our £2600 early exit fee because we also can't afford that after paying estate agent, solicitors and stamp duty.
:-( any help gratefully received!

cattie

I can tell you straight away there there is no chance of anybody paying your early repayment charges. It's not the way lenders work.

Unfortunately it looks as if you will either have to stay in the property untill whatever date no early repayment charges will be levied, or if the situation is so bad perhaps you can consider letting out your property & using the rent money to pay rent on another property for yourseves untill you can redeem the mortgage without penaly fees. Really you need to seek the lenders permission to let a property & as yours is a very new mortgage they may not agree.

If you have neighbour issues you need to be aware that this must be disclosed to a buyer via solicitor's queries if any official complaints have been made by you , so do take this into consideration.

poppy10_2

If it's portable surely you can just transfer the mortgage to the new property???

eek

poppy10 wrote: »

If it's portable surely you can just transfer the mortgage to the new property???

They can't because HSBC have changed their lending criteria. When they took it out their criteria was 100% allowed now its max 90%. The bank want to apply the new criteria to the transfer and that is the cause of the problem.

I can see why the rules have changed and can also see how unfair it appears to be. I think the devil is in the detail here and your aim needs to be avoiding the exit fee due to their changing of the rules.

suzyp1982

Have you had your house valued? it might have gone up and will cover the deposit for your move

luckyfool

While lenders will not "pay the penalty" there are some lenders who will go above 100% so you could borrow to pay the penalty.

Gorgeous_George

Your lender wants to minimise the risk of the loan that they made to you. They have gained little confidence in the short time that you have been with them whether or not you have paid on time every month.

A move costs money and your lender will have a good idea how much this adds up to. It is safer for them if you stay put and serve your time.

House purchase is such a major decision in life. Seven months seems a very short time to realise that you made a mistake. I guess that your lender is simply protecting their inerests.

Have you considered dealing with the problem neighbours? If running away is the answer, maybe renting would suit you better. It's much easier to run away from your problems if you rent.

On the other hand, it does seem rather unfair that your lender has sold you a portable mortgage and then removed the portability by stealth. You may have a case to argue but, as the lender holds all the cards, your bargaining position is weak.

Good luck.

GG

homer_j_3

eek wrote: »

They can't because HSBC have changed their lending criteria. When they took it out their criteria was 100% allowed now its max 90%. The bank want to apply the new criteria to the transfer and that is the cause of the problem.

I can see why the rules have changed and can also see how unfair it appears to be. I think the devil is in the detail here and your aim needs to be avoiding the exit fee due to their changing of the rules.

They will not get round ERC due to changes in lending policy. Portability rules are always subject to meeting lending criteria at the time of wanting to exercise and if you don't meet it then tough!

I would look to try again to resolve your neighbourly dispute as this may be cheaper but if you seriously cannot, why not see if the lender will allow you to let the property out and you go and rent somewhere until you have enough money to sell.

When you sell you have to disclose any disputes with a neighbour and depending what they are may completely put off any potential buyers.

tomstickland

Neighbour issues can be a real problem. What is the issue?

If you took a 100% mortgage and have not saved anything since then I'd advise against spending more money; you could end up in a house with the same problem.

Have you considered selling and renting? That would depend how much of a neighbour problem you have. If your flat has increased in value slightly you could cover your expenses and move on.