Stuck with HSBC?

Lu_Lu

We are selling and looking to buy something bigger. Have current mortgage with HSBC with early repayment fees and a DIP for higher borrowing . I know this means little until full application.

My question is based on another thread here where the OP has been advised to avoid HSBC due to strict criteria.

Problem is we are suck as don't have the money to repay ERC to go elsewhere concernednthat oncerned that we won't get what we want from HSBC. When we move our finances will basically split 3 ways - 1/3 of incomings pays mortgage, 1/3 other expenses and 1/3 'spare' cash.

Should we continue with full application to them? Do other borrowers let you tale more to pay back ERCS?

Not sure what to do as feel a bit stuck.

Lu_Lu

Well I've spoken to London and Country and they say they will lend more than HSBC in principle and we may be able to add early repayment charges to new mortgage so we may well be looking at moving anyway.

Thrugelmir

HSBC offer extremely competitive rates for customers that meet their lending criteria. Why the haste to jump ship?

Lu_Lu

Thrugelmir wrote: »

HSBC offer extremely competitive rates for customers that meet their lending criteria. Why the haste to jump ship?

One is that they may not lend us what we need to be able to buy the house we have seen and would like to offer on.

The other that they have stricter affordability criteria and we may go through it all to get rejected anyway.

Just trying to lessen the stress but I would rather stay with them.

Wish I had that crystal ball!!!

Thrugelmir

HSBC have a target market for customers. That's why they are regarded as picky. All lenders have had to adopt lending criteria that satisfies the regulator and meets affordability requirements.

HSBC only came to prominence after the 2008 crash. When other lenders fell by the wayside. Leaving HSBC as the biggest lender left in the market at the time. In reality it has never changed. Always has lent on a conservative basis.