Hsbc porting nightmare!!!

Pateman1987

haras_nosirrah wrote: »

Porting has always been subject to meeting the current lenders terms and conditions. I don't know of any lenders who don't treat a porting application as a new application

I worked for a high street bank for 10 years and am now a mortgage broker, I wont name who i worked for or the lenders i've spoken to this week but I can confirm multiple lenders will allow like for like ports as long as the lender is happy with the security. I myself have done ports with NO proof of income or downsizes and like for like.

Pateman1987

All lenders treat it as a new application but if there is no additional lending and no material change to the mortgage nearly all the lenders i have spoken to waive the need to an affordability check.

Pateman1987

You are confusing a change in my circumstances with a material change to the mortgage, There is no material change to the mortgage.


Existing borrowers – contract variations and new regulated mortgage contracts

3.8 Under both our existing rules and the MMR proposals, an affordability assessment is required whenever a lender enters into a regulated mortgage contract with a customer, whether or not there is an impact on affordability. For example, an affordability assessment is required when a customer moves to a new rate with their existing lender, if the transaction is structured as a new mortgage contract, even where they are not borrowing any more money. By contrast, an affordability assessment is not required for the same transaction if it takes effect through a contract variation, even where there might be a material impact on affordability.

3.9 To address this, we have amended the rules so that an affordability assessment is not required for an existing borrower, staying with their existing lender, if there is no increase in the current amount outstanding (i.e. no additional borrowing) – unless there is a material impact on affordability. This is the case whether the transaction takes effect through a contract variation, or a new regulated mortgage contract.

3.10 So, for example, an affordability assessment will not be required for a change that does not have a material impact on affordability, such as a rate switch or retention deal; or where the borrower is porting their mortgage or moving to a new property (with no increase in the current amount outstanding).

3.11 However, an affordability assessment will be required where there is additional borrowing, or there is deemed to be a material impact on affordability. Whether a change has a material PS12/16 Mortgage Market mpact on affordability will vary according to the circumstances of the case. We will assume, in the absence of evidence to the contrary, that the following changes are likely to be material:
• extending the term of the loan beyond the borrower’s expected retirement;
• changing the repayment type; or
• removing a party to the contract.

Thrugelmir

Pateman1987 wrote: »

You are confusing a change in my circumstances with a material change to the mortgage, There is no material change to the mortgage.

As far as the lender is though there is. You are confusing regulations with a business imposing it's own term and conditions of trade. Doesn't matter what you think. If any business doesn't want your trade they can decline your application.

I've spoken to 4 high street lenders this week and they all allow like for like ports with no affordability tests necessary.

Who did you speak to at the lenders, an underwriter?

Why are struggling to find an alternative lender ?

csgohan4

Basically OP is sour because HSBC won't give them what they want, mortgage broker or not, no matter how much you stomp your feet it aint happening.

The bank have their on rules on top of current minimum guidance, they do not have to allow porting.

What part of that do you not understand, as far as the FCA are concerned, they are following the minimum set of regulations, anything else is the lender's additional criteria which is discretion.

You cannot force a lender to lend or port a product. Their money their rules like I said.

If you feel so strongly why not sell your current place and buy fresh, but you fail affordability as you said. The bank are not at fault for your change in circumstances

haras_nosirrah

Sounds as though if they will consider if you get the projection done by an accountant then that is your best option to do

Pateman1987

I spoke to the BDM's, i understand the business can impose their own terms but as a lending decision it makes absolutely no sense to not allow me to move. Which is very frustrating.

The lenders I've spoken to confirmed that they would lend on a like for like basis, So if the original mortgage was already with them. They wouldn't lend to me on the basis the mortgage is a new case.

When i worked for a bank as a mortgage adviser I must have completed more than a dozen like for like ports where the client no longer met affordability lucky the bank i worked for treated customers fairly something HSBC clearly isnt interested in!

Pateman1987

You would be sour too if you couldn't move proeprty because a lender wont complete a like for like port. Its frustrating as after making a complaint they said they would be happy to look at the mortgage on a like for like basis to then decline to lend based on us being unable to provide evidence of income is the biggest insult. Something they were very aware of from the outset.

csgohan4

Pateman1987 wrote: »

You would be sour to if you couldnt move proeprty because a lender wont complete a like for like port. Its frustrating as after making a complaint they said they would be happy to look at the mortgage on a like for like basis to then decline to lend based on us being unable to provide evidence of income. Something they were very aware of from the outset.

yes I wouldn't be happy but at the same time, you can't expect a lender to move heaven and earth because of your life choices and circumstances have changed mid contract.

You have tried your best and they won't budge, you knew you would fail affordability being a broker yourself, time to reconsider things?

As mentioned complain, but are you realistically going to get anywhere?

Perhaps in hindsight finding another lender who are more forgiving for ports would be useful in future, HSBC while were market leading, are amongst the strictest

Pateman1987

When i took the mortgage out i was a little naive, whilst i had been working in mortgages for many years it was always with one lender and our stance on like for like was a lot more relaxed.

I'm hoping once we have our tax computations for 2018/19 the lender will reconsider the port. Either way i will not be renewing my mortgage with HSBC at the end of my fixed deal.

Regardless of the lenders stance on like for like ports my case has been handled very badly, HSBC should never have written to me confirming they would be happy to look at my case as an exception only to then ask for further documentation knowing i wouldnt be able to provide it.