HSBC won't port our mortgage and we can't afford to stay here. Lowest point ever.

pandapaws

Sorry guys, I'm normally fairly upbeat, but excluding family deaths and the likes, I think that today has been the worst day of my life and I don't know what to do. This probably should go on the mortgage board but to be honest I think I'm looking for support, and I'd much rather do that among friends than strangers.

Those who know me, will know that for the past 9 months we've been desperately trying to sell our house. We finally did at the weekend for £249.950 and thought it was the end of our worries. We want to buy another which is 2 mins from work (saving £400 to 500/month on petrol), so that when baby is born in 8 weeks I can go back to work after 6 weeks and not lose any pay. If we can't move, I can't work as we're just too far from home. I earn half the household income, and as you see from my signature we're not exactly flush for cash. We simply can't afford for me not to work - that was how we got into the debt mess when I took 2 years off after first baby.

We're 2 years into a 5-year fixed rate (4.79%) with HSBC, and our redemption penalty would be about £8k. As far as we were aware, it was fully portable. But we've been told this week that HSBC have changed their lending criteria, and we therefore can't get a new mortgage with them because we don't fit their new lending profile because of our other debts. We're not looking for more money, just to port the existing mortgage as it is. We have a hell of a lot of debt but we've NEVER missed a mortgage or debt payment, very rarely gone only slightly over overdraft limits, and have (had) an excellent working relationship with HSBC - the mortgage adviser who sent it to head office is totally at a loss too as to what we can do - he says they're mad and that we'd have no bother getting a mortgage from any other bank. But they won't even talk to us - only through the adviser. They haven't even given us a reason why or offered any solution, except that we have too much 'external borrowing' and would have to pay at least half of it off before they'll consider anything. As if we wouldn't have done that already if we could.

So they're effectively saying we can't move - we've got to stay where we are where we can't afford to live. We were also going to go onto a Homestart (3yr interest only) mortgage which would have saved over £500/mth so we could use that to clear our other debts faster. Various other savings by moving mean that we'd be about £1200 a month better off, and potentially have paid off all our debt within 2.5 years. By staying where we are we're going to be about £2,000 a month worse off and face very serious financial difficulties.

But they're not letting us move, therefore we're financially stuffed. Can they do that?

Sorry, I'm very hormonal, didn't sleep last night, been crying all day while trying to hide from DH & DS as I don't want to upset them, and to cap it off I've got to go to work for a nightshift tonight and won't even see DH apart from briefly passing on the motorway. Not sure how much of this I can take and feel totally stuck. DS (3) keeps saying 'I love you mummy' (which he never does normally!) which just makes me feel like a total failure - if I hadn't spent so much money we couldn't afford then I'd be acting like a proper mother right now rather than crying into my laptop while I fob him off with the TV. Not sure what advice I'm looking for, but had to get it off my chest. Any help greatly appreciated. Sorry for the long self-indulgent moan.

dotchas

Sorry ,I can't offer much advice.It seems like bureaucracy gone mad,after all if you didn't move they would still be your lender!
If only it was still like the old days where you could chat to the bank manager and he could bend the rules if it was the best thing to do.After all you will have more disposible income after the move!
Can you get a mortgage from another lender?
I am sure there will be a way!
Fingers crossed

elantan

ohh hun huge hug for you (just cant do them) i dont have any advice i think it is ridiculous what they are doing but that doesnt solve the situation ...just want you to know i hope it works out for you ...and please fell free to vent away you know your not alone thats what we are all about support

angelavdavis

Sorry this has got you down.

Sadly, I suspect you may have been caught up in their internal review of sub-prime mortgages and so because they have tightened this up, it has effectively discounted you from the portability.

I suggest you follow HSBC's internal complaints procedure - asking them to reconsider their decision - emphasizing the reasons behind your move and your unblemished payment record. Finish the letter along the lines that if they are unable to reconsider, you will have no other option than to take your complaint to the Banking Ombudsman.

pandapaws

Thanks guys. We do fully intend to try and take it further with them, the problem is that we desperately want things to move super-fast as we've effectively got an 8 week deadline.

It's definitely a result of the whole US sub-prime nonsense, but we've been with them for years and got complimentary Premier accounts. Our branch manager loves us as they make a fortune out of us and know that we're good for the money! It's basically a case of someone sitting in an office in Sheffield who's got nothing better to do, and no interest in actually considering the situation. After all, it doesn't affect them any so what does it matter?

Have stopped the waterworks and feeling rather stupid - after I re-read my post I thought I'd better get a grip! Instead of wallowing, I did a igsaw with DS (who was more interested in the TV!) and had a look at 2 online calculators which take debt into consideration. Nationwide will lend us up to £258k, Halifax say betweem £222 and £250k. So maybe there's some light - we just can't afford that bloomin redemption penalty, as it would have to go on credit card, which would then reduce the amount we could borrow...viscious!

lunar

Panda im so sorry they are doing this. I really dont have any pratical advice on the morgtage but just wanted to send you hugs. how can they not see that you will be in a better position to pay if you make this move. I really hope you get this sorted as i know how much you are wanting to get moved before the baby.

debts put you in such a catch 22, like not being able to get lower interest credit cards. im really keeping my fingers crossed that you get this sorted out.

CLAPTON

Sorry dont know your full circumstances but
It seems that moving will save you a great deal of money so it might be best to accept the £8k redemption penalty.

Is there enough equity in the property to do this and still clear the debts?

Would renting for a while (after the sale) be feasible then you could look for a new home at leisure?

Lillys_mum

I hope you get somewhere with this, moving house/ having a baby is stressful enough without red tape adding to it.

We applied to both the Nationwide and the Halifax for our mortgage, Nationwide said no Halifax said yes.

Nationwide are quite tight about existing debt - in my opinion, and it is only my opinion - if the deals with both are similar then I would apply to the Halifax first as they are more likely to accept you.

This is only based on my experience with the above 2 companies and what you chose to do with the information is up to you - I know everyone is different and I don't know your full circumstances.

Hope you get things sorted out

LM
xx

kizzykizzywizzy

I'm so sorry, what a situation to be in.
I agree with the previous poster, can you not go to the banking ombudsman? After all, what they are doing is entrapment, you can't leave them without giving them a huge wedge of money & you can't move unless they let you move the mortgage. I know nothing about this at all, but was there anything in your original mortgage agreement about the mortgage being portable?? surely they need to keep to the original agreement.
Sorry if I'm talking a load of rubbish, just trying to help.
Please don't get upset, ( easy to say, I know ) perhaps there is someone higher up that WILL speak to you, stupid lot, they've got more chance of losing thier money making you stay put, I wish people would look at each person/situation on it's own merit
Take care:grouphug:

pandapaws

LM, that's interesting to know - thanks. I've never had any dealings with Nationwide, but we've got a credit card with Halifax which recently had its limit increased by 3k without us asking (and no, we haven't spent it!!!). The rates are awful with both though! It makes me really mad that we'd have to get another 8k of debt to pay redemption, and then pay an additional £200 a month because we're on a much higher rate. There's the possibility of getting some of that back from HSBC after a long formal complaint, but no guarantees.

We thought about renting, but we work in a tiny village which is the only place we'd consider in that area, and there's absolutely nothing there to rent. There's very little to buy, but we were really lucky to fall upon the house we've 'bought' as it's pretty much our dream house at a price we can afford. We just want to move and settle.

Because we dropped our price to sell in time, there's not much equity at all in our house. We bought for £247k, owe £228k on the mortgage, and sold for £250k. Fees will be about 7k, so very little left over.

pandapaws

kizzykizzywizzy wrote: »

Take care:grouphug:

Thanks - I think that's my first ever dodgy-threesome-hug, so that made me smile at least!:rolleyes:

As said before, it is abolutely bonkers, beaurocracy gone mad. We'll definitely be doing something official with a complaint as they have got us trapped - our mortgage was supposed to be portable otherwise we'd never have taken it out. It's something to do with the fact that we've got a bargain with the house we've bought - we're looking to borrow 95% of the purchase price (even though house worth far more) whereas the old mortgage was 90% of a valuation 2yrs ago, deespite both houses selling for exactly the same amount. But they won't even let us borrow 90% - been told we can't reapply for another mortgage with them for 3 months!

Absolute bunch of bankers!