HSBC LTV increases 8% just before I enter re-mortgage phase...!

DSW25

My 2 year fixed rate is expiring in October therefore I phoned HSBC a few weeks ago to talk about my choices, my LTV was 77%, and I found a 80% LTV mortgage that I was happy with. I was told to avoid the early repayment charges to wait until I enter the 90 day period before the expiry date of the fixed term. This period started this week and the mortgage I wanted it still available, however, when I phoned them up today the LTV of my property has jumped to 85%!!! That means the value of my property (which for info is a new build, 2 years ago) has dropped £30,000 in 2 weeks!! I asked them to carry out their 'desktop valuation', they said it would not bring up any results and the next step would to be get a valuer out at a cost! I am raging about this and I am considering leaving HSBC after 20 years of being a loyal customer.

Any suggestions? Are they allowed to do such a dramatic change, I find it very convenient for them to do this just when I enter the re-mortgage phase...

glosoli

So the original conversation was that of rates and options, assuming a loan to value of less than 80%, and then today upon application when they check the value it is 85%? I guess the original conversation should have been caveated as "this is on the assumption upon full application your LTV remains at atleast 80% or less".

Unless you take them up on the offer of a valuation there is little you can do other than take the higher rate or re-mortgage elsewhere, I doubt there is any malice involved.

tacpot12

From your description it should like the method of valuing your property has changed, and this has produced a lower value for your particular house.

If so, it will be worthwhile paying for a valuation - if you believe a professional valuer will arrive at the correct figure. They might arrive at a lower figure still.

HSBC have not broken any terms and conditions of their mortgage with you so you won't get very far complaining to anyone. I would try the desktop valuation route again next week to see if you get a different result.