Part exchange mortgage query urgent advice needed please

bubblesmoney

No I am not porting as only £1800 is due on my existing mortgage. HSBC do know as I surgically explained that builder is buying my existing house for 160,000 and I am using that amount and my extra cash deposit to pay off my existing mortgage and my deposit for present purchase of 349950. I Also explained calculations showing it to be 44% LTV instead of 85% LTV as claimed by HSBC. HSBC lady on my second phone call yesterday again discussed a second time yesterday with mortgage underwriters who apparently told her that my part exchange money will not be included by HSBC for deposit calculations.

This should be an extremely common situation as loads will be doing part exchange and if HSBC underwriters don't have a clue how this works then it's crazy.

I have complained to HSBC via email and Twitter and Twitter team have said will be looked into. Email hadn't yet got any response yet.

One of my close relatives was an ex board member of HSBC for the Asia pacific region in the recent past but not any more. So next time I talk to him will pull his leg about clueless underwriting team at HSBC.

bubblesmoney

Oops typos

AnotherJoe

bubblesmoney wrote: »

No I am not porting as only £1800 is due on my existing mortgage. HSBC do know as I surgically explained that builder is buying my existing house for 160,000 and I am using that amount and my extra cash deposit to pay off my existing mortgage and my deposit for present purchase of 349950. I Also explained calculations showing it to be 44% LTV instead of 85% LTV as claimed by HSBC. HSBC lady on my second phone call yesterday again discussed a second time yesterday with mortgage underwriters who apparently told her that my part exchange money will not be included by HSBC for deposit calculations.

But why did you feel it necessary to explain that? You are selling your house and buying another. Exactly who buys it is irrelevant. I do think you've just confused HSBC, all they need to know is the price of the new house and the size of the mortgage. I dont even think it will be visible to them you are part exchanging it your solicitor deals with all the money.

Cornucopia

If you can't get HSBC to understand, then go somewhere else.

I've never heard of an arrangement like the one proposed by HSBC, and I suspect that you will have no issue with other lenders, as long as the valuations are realistic.

Also, you may want to consider using the Builder's Financial Adviser, if they have one, as they will (a) know of Lenders who already deal happily with PX, and (b) will push things along.

bubblesmoney

They can't have been confused after two separate calls.

During the mortgage application process on the phone the last asked all the usual questions. She asked about my funds and properties and I explained about my existing house and the one I want to buy and about two other properties that I own. In the affordability section and I explained my cash deposit and rest from sale of present property as part exchange to builder. The lady had mentioned not to with hold any information so mentioned that £160000 would be Frunk same of present property to builder as part exchange for my new build property. I explained that stamp duty was being paid on £349950 which was the sale price. I had to again explain the sale price as they were trying to tell me that they would consider 349950 - 160,000 as the actual value of the property for mortgage purposes!!!!

Awaiting response from HSBC after my complaint yesterday.

Builder wanted to complete the whole prices by the weekend and now being delayed by these clueless HSBC underwriters.

Been with HSBC for ages. Didn't have problems with my existing mortgage with HSBC and been very happy with HSBC for more than a decade and do want to stay with them as I think will get the best rates with them once problem sorted.

If they calculate correctly then should get a 1.8% life time tracker for new mortgage. My present hsbc life time tracker is 1.29% which won't be possible to get now.

Hopefully who ever from HSBC looks info this will see the silly situation caused by underwriting team who can't understand the Part exchange process which should be bread and butter for them.

Think other trackers from elsewhere might be more expensive and would liners to stay with HSBC as fulfill all criteria and they only need 40% deposit and I am offering 54% deposit so am surprised with them messing up.

bubblesmoney

Yes might need to go Duran that route of other lenders if the HSBC clueless about post exchange causes delays. But will chase them later and won't let them get away with messing up my mortgage application forcing me to go with other vendors when I was eligible for the life time tracker at the cheapest rates from HSBC

bubblesmoney

Sorry can't seem to be able to edit typos from mobile chrome browser

bubblesmoney

Valuations for new property shouldn't be an issue as have several colleagues on same estate who paid higher price for similar properties. Recently builder dropped price by 20k as last two properties on estate for sale before they move out of estate. So builder is giving all extras carpets, vinyl, tiling, down lighters, appliances, security system, lawn grass, kitchen and utility room cupboards and bedroom cupboard as free incentives which cost extra for the other people I know who bought in same estate for higher price in the last 2y.

Cornucopia

There are various other lenders at about that rate or less...

Nationwide, Newcastle BS, TSB, Coventry BS in the top 10 tables I have in front of me.

In fact, if your HSBC deal has a £999 fee (as shown in my table), then Nationwide is considerably cheaper than that at 1.29% with the same fee.

bubblesmoney

Thank you. My HSBC account think gives me lower fees from what I checked few days ago. But will check out the ones you mentioned. I checked out with MSE mortgage checker and got hsbc as cheapest a few days ago but will definitely check out the ones you mentioned.

Even if the same cost then might be better going to another lender with more literate underwriters than the ones I seem to have run into this time at HSBC and save myself the hassles of correcting them.