Can't Port our Great Rate with HSBC

burnsguitarman

As the title says, We were looking to port over our 1.5% mortgage to a new property. However we have now been told it isn't possible as we only have 4yrs 11months left, and the minimum term is 5 yrs!

We owe just less than 30k, and didn't want to borrow any more.
So we decided to pay for our new property using the proceeds of our sale, which would just about cover it along with all the associated expenses, and once we have moved in apply for a mortgage to renovate and build an extension.

Now we have heard that we will be unable to raise a mortgage until we have lived in the property for 6 months.

Can any body advise on a way around this? We don't have the money to do much work without borrowing and the property is not going to be brilliant to live in until some of the work is done.

kingstreet

Do a new mortgage with a longer term?

Most products don't have a link to the term of the mortgage, so you can take the remnants of a (eg) five year fix over 15, 20 or 25 years.

However this is HSBC we're talking about and with no broker scrutiny, they can do pretty much what they like under the heading of "commercial decision" and get no criticism from the regulator.

amnblog

Some lenders will allow you to remortgage inside 6 months.

Engage a mortgage broker and expect to pay a broker fee.

burnsguitarman

Thanks, I really don't want to increase the term as we are 59, and 55 and hoping to retire in 5 years.
I have an appointment with HSBC this morning to see what best they can offer. Depending on the outcome, we may have to look elsewhere.

kingstreet

Extend the term, then overpay voluntarily upto what you would have paid on the shorter term, then the mortgage is repaid in the timescale you wanted.