HSBC - mortgage advice needed

kenzie123

Hello

We had an offer accepted on a house, and secured a mortgage offer with HSBC. They did a survey on the property, and found it to be valued at less than the amount we had offered.

We re-negotiated a price, and had that accepted - in order for us to go ahead we had to increase our deposit.

The mortgage had to be re-applied for due to the different amounts (house value, loan value and deposit) - we went through the process again 2 weeks ago, and were told that all was approved. We also received the new mortgage offer document in the post.

Yesterday, we received a phone call from a Mortgage and Protection Manager at HSBC. We requested an email to be sent in writing which said this -

your property valuation has come back at £295,000 so
based on the current loan amount this is 83% of the value of the property
and the rate you have been recommended is on 80% loan to value. So there
are 2 options from here of you still need £245,000 then we will need to
complete a new application on 85% loan to value rates or we need to reduce
the loan amount to £236,000 to be in line with 80% loan to value rates
available.

Please let me know how you wish to proceed with the application further.

We have forwarded this to the manager of the original mortgage advisor (the day we did this he was present in the room and he was assessing her. It was her last day before maternity leave). He has not replied yet.

We are completely flummoxed as to why we need go through the process again. Does the above email make sense to anyone?
We were told that all was clear and we could go ahead with legal checks etc, which we have done.

We are hoping this is a mistake - but how likely would that be?

Any advice on how to proceed would be appreciated.

Many thanks

G_M

We are completely flummoxed as to why we need go through the process again. Does the above email make sense to anyone?

It seems clear enough, unless of course, HSBC have got their figures wrong. Have you checked?

The purchase price has changed. Your deposit has changed.
As a result, it seems " the current loan amount this is 83% of the value of the property"

Your mortgage product (and interest charged I assume) is based "on 80% loan to value" hence the two options they have offered.

kenzie123

Thanks for your response G_M

This makes sense - however we have already had a meeting and approval POST being told about the survey. So all has been approved.

Our current loan amount IS 83% - so he's correct there, however this wasn't a problem just 2 weeks ago, when we had the mortgage approved with another advisor. Which is why we are confused.

G_M

they've only just spotted the LTV is no longer 80%?

People make mistakes sometimes....

Did you not spot it yourself?

Presumably when you re-did your budgetting following the change in Valuation, your worked out the new LTV? You must have known your mortgage product was based on 80%.

Crashy_Time

Banks and sellers differing on valuation seems to be new "thing". Very interesting.