Re-mortgage with HSBC and First Direct for self employed

Karolka

Hi there
I was wondering if someone may share their opinion on our situation.
We're looking into options of remortgaging.

Our situation is not straightforward as i am on maternity leave (from 25/4/15 until 25/1/16 - 9months) and my husband is LTD company director. He earns annual salary of circa 10k and draws some dividends on top. He only has 2 years worth of accounts as his accounting year is ending 1 month after the end of mortgage fix term.

The capital left to pay is 190k and the house is worth more than 350k, so LTV is less than 60%. At the moment our rate is 2.39%

here are our options
1/ We got a rate from one broker of 2.39% for 5 years fix (plus fees £1500) with the bank that he thinks will accept us
2/ We got an advice from onother broker that we should wait for the 3rd year accounts, pay the higher rate for say 2 months (cost of £260 a month).
3/ I found HSBC rate of 2.19% (plus fee £999) - according to my calculations it would be the saving of around £1800 over period of the fixed term if we got the rate. My husband is a client of HSBC both personal and business account.
4/ I've talked to First Direct, with which i have an account, and they advised that they would not take the dividends into account and also a letter from my employer confirming date of return and salary upon return, would probably help but still may not be 100% sufficient.

What do you think we should do. Is HSBC likely to accept us? Should we risk and apply with them or FD or go with the bank that the broker proposed. Does the HSBC have similar requirements to FD?
many thanks for your thoughts

amnblog

There are a few 5 year fixed deals inside 2.39% (assuming you can meet underwriting).


As usual HSBC are pricing aggressively. Unfortunately, they tend to underwrite in the same manner, so good luck with that one.

Thrugelmir

Karolka wrote: »

Does the HSBC have similar requirements to FD?
many thanks for your thoughts

FD is a subsidiary of HSBC. As a consequence underwriting criteria will be very similar.