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

dubsey

Panda hasn't said that the debt was all the banks fault. They have seen that in order for the future to be better financially they need to move. If they stayed in the current property the bank would be happy even though Panda can see what disaster that will bring. So from the banks point of view nothing (except address) will change. Because Panda is in a five year deal, I would have also thought if you were not asking for more money or a longer term it would have been straightforward.

As I previously stated, we moved because we knew a cut in salary was coming so we had to downsize our home and subsequently our mortgage. We thought we were being sensible. We had no debts and would have required a 56% mortgage. First Direct told us there lending terms had changed and we no longer qualified. Long term they did us a huge favour, we found a house that suited our means and we now have a 48% mortgage. The biggest difference is that Panda is already in the middle of a fixed mortgage with them. We weren't, we've always had the SVR (DH couldn't bear the thought of a fixed rate ending and then we are dropped in it).

silvercar

Put it another way, you lent £20K of your own money to someone when money was easy to come by for you. You are now able to get that money back in much more difficult times and you have real concerns the person you lent it to is not likely to pay it back than you were when you lent it. Would you try to get your money back ? Of course you would.

Not the same at all, as far as the lender is concerned the amount borrowed is the same, the address is the only thing that changes. The lender is not trying to get the money back, they will continue to lend if panda is at the current address.

Rachman_2

silvercar wrote: »

Not the same at all, as far as the lender is concerned the amount borrowed is the same, the address is the only thing that changes. The lender is not trying to get the money back, they will continue to lend if panda is at the current address.

Correct, but I will bet you a borrowed pound to your penny that if the OP made the approach to the lender today they made 2 years ago for a mortgage, they'd be turned down. The lender is legally tied in to let them stay where they are as is, because that's what they signed up for. If they try to move, the lender has an out.

the address is not the only thing that changes - the world has changed and the bank's criteria have changed, if the bank can reduce its exposure it will - if you made a decision that was, with hindsight, wrong, you'd try to change it, wouldn't you ?

It's obvious what the lender wants - a risky borrower (as they see it) off their books. So they make it difficult for the OP. That's not that hard to see is it ?

And I'd be wary of the internet saying yes, then when you actually try to get the mortgage, it suddenly becomes a lot harder.

pandapaws

:eek: Good God, I'm so pleased some of you guys weren't around when I was having my bad day, I'd quite possibly have just ended it all!!!:rotfl:

Silvercar, you're 100% correct in all aspects again - the only things that change are the address (significantly for the better), the equity in the house - we're buying one that's valued at significantly more than ours, and our financial situation, which would have been £1200 a month better off with the port. So that lessens their risk in every respect. HSBC themselves have admitted that it's a problem of 'computer says no'.

Our mortgage has been fully approved with the Halifax, not just the internet calculator. Paid the survey fee this morning and all should be going ahead in the next few weeks. :cool:

Those of you who were talking about renting, I know exactly what you're saying and it is something we discussed, but like Hypno, it just isn't something we'd want to do. Plus the fact we're moving to a tiny village with nothing available to rent at the moment, and the fact that in that general area, rents are not much less than the mortgage anyway. The predicted house price crash is a worry, but by buying a house for 50k less than its value we're covered slightly in that respect. Additionally, we're in a fairly stable part of the country, well away from the south-east. It is a risk, but we're moving for the long-term this time, and it's unlikely that we'll move again until our mortgage has been paid off in about 12-15 years or so and the kids are grown up.

I don't get the comments about us barely keeping our heads above the water: we're managing fine, and have plenty over each month to live comfortably. We're fully covered in case of inability to work for any reason, and the only thing that would cause a problem would stopping work voluntarily - which we're moving to prevent, as we don't want to get any more debt right now. Some people see big numbers and panic, rather than looking at the bigger picture. A lot of people have debts that are equal to their salary - we've got a combined salary of £80k, plus self-employed income of approx another £15k. Our monthly credit commitments are about £1000 a month - we choose to overpay them, so while all the figures are big numbers, they're all relative.

I'd shelve buying a house, maybe even swallow the extended redemption fee (I have to ask, you are playing with quarter of a million quid of someone else's money AND your home, did you not read the forms and understand them when you signed up - or did you not ask your lawyer to explain them if you did not (another risk of using conveyancing bucket shops, BTW - they mostly don't know what they are talking about)).

We knew exactly what we were doing, and what you're saying must therefore apply to everyone with a mortgage (and compared to a lot of people we know, 1/4 of a million quid isn't a lot for a mortgage), we're all playing with our homes and someone else's money - anyone could come unstuck and we hear sorry tales here every day. We knew exactly what we were signing up for, and checked at the time that the mortgage was portable. I just don't get what part of it you think we didn't understand! Additionally we didn't use a 'conveyancing bucket shop' - we had a proper solicitor who was paid over £2k for the work. We're using a cheap solicitor this time, but still one that's fully qualified.

When I originally posted, all I was hoping for was a bit of support from friends who were in a similar/realtive positions, and any advice that could be offered. I'm extremely grateful for all that I received, and it did make a real difference when we weren't sure what path to take. Bizarre that now we're sorted, I feel as though I'm having to justify/defend myself at every turn!

pandapaws

abaxas wrote: »

I cant beleive your writing this crap.

No-one has to lend you money, they do it through choice and they have decided not to lend. Where is the issue here, other than your greed?

Greed? If wanting the best I can get for my family is greed, then I'm guilty.

And "you are" = "you're".
"Your" means belonging to you.

xredwebx

Quote:
Originally Posted by abaxas
I cant beleive your writing this crap.

No-one has to lend you money, they do it through choice and they have decided not to lend. Where is the issue here, other than your greed?


Why do some people have to be so negative! If you dont like what you see move on to another forum.

Well done for getting sorted Panda!

Good luck with the move/baby

pandapaws

Thanks redweb! Although I might be slightly guilty myself of not liking what I read, but I'll just blame it on hormones!!!

Rachman_2

pandapaws wrote: »

:eek: Good God, I'm so pleased some of you guys weren't around when I was having my bad day, I'd quite possibly have just ended it all!!!:rotfl:

Silvercar, you're 100% correct in all aspects again - the only things that change are the address (significantly for the better), the equity in the house - we're buying one that's valued at significantly more than ours, and our financial situation, which would have been £1200 a month better off with the port. So that lessens their risk in every respect. HSBC themselves have admitted that it's a problem of 'computer says no'.

Our mortgage has been fully approved with the Halifax, not just the internet calculator. Paid the survey fee this morning and all should be going ahead in the next few weeks. :cool:

Those of you who were talking about renting, I know exactly what you're saying and it is something we discussed, but like Hypno, it just isn't something we'd want to do. Plus the fact we're moving to a tiny village with nothing available to rent at the moment, and the fact that in that general area, rents are not much less than the mortgage anyway. The predicted house price crash is a worry, but by buying a house for 50k less than its value we're covered slightly in that respect. Additionally, we're in a fairly stable part of the country, well away from the south-east. It is a risk, but we're moving for the long-term this time, and it's unlikely that we'll move again until our mortgage has been paid off in about 12-15 years or so and the kids are grown up.

I don't get the comments about us barely keeping our heads above the water: we're managing fine, and have plenty over each month to live comfortably. We're fully covered in case of inability to work for any reason, and the only thing that would cause a problem would stopping work voluntarily - which we're moving to prevent, as we don't want to get any more debt right now. Some people see big numbers and panic, rather than looking at the bigger picture. A lot of people have debts that are equal to their salary - we've got a combined salary of £80k, plus self-employed income of approx another £15k. Our monthly credit commitments are about £1000 a month - we choose to overpay them, so while all the figures are big numbers, they're all relative.



We knew exactly what we were doing, and what you're saying must therefore apply to everyone with a mortgage (and compared to a lot of people we know, 1/4 of a million quid isn't a lot for a mortgage), we're all playing with our homes and someone else's money - anyone could come unstuck and we hear sorry tales here every day. We knew exactly what we were signing up for, and checked at the time that the mortgage was portable. I just don't get what part of it you think we didn't understand! Additionally we didn't use a 'conveyancing bucket shop' - we had a proper solicitor who was paid over £2k for the work. We're using a cheap solicitor this time, but still one that's fully qualified.

When I originally posted, all I was hoping for was a bit of support from friends who were in a similar/realtive positions, and any advice that could be offered. I'm extremely grateful for all that I received, and it did make a real difference when we weren't sure what path to take. Bizarre that now we're sorted, I feel as though I'm having to justify/defend myself at every turn!

I wrote a long detailed response - the system deleted it - but the gist was, you really don't look at risk do you - have you considered forced change of employment or redundancy and whether they pay out (I've written some of those policies - they don't say what you think they do, put it that way). FWIW, you are in a better position than a lot of people - you don't have any assets, only net debt, so if you lose, you have lost nothing.

In all sincerity, good luck, but by Christ, you need to look at risks as well as opportunities, with two kids even more so.....

Wildchild_2

Some people just don't know the difference between constructive criticism and condescending ****.

I think you have done very well and hope you get a good mortgage offer.

Good luck with the move and the baby.

I bank with HSBC too but I think sometimes they can be a bit daft.

When I applied for my mortgage with them they had printed out the entire contract and taken the booking fee from my account before we had decided anything.

They put the money back as we said we needed to think about it. They also told us we had to have life cover to pay off the mortgage if one of us died - they said it was a legal requirement. They could well be right but our mortgage broker didn't seem to think so and Nationwide offered us cover but we didn't take it.

jimmyay

if you have £80k of unsecured debt and want a 95% mortgage i'm not surprise the lenders are being funny. looks like you have managed to keep manking payments on time just by taking out more credit cards and loans. i have some sympathy but still.

also you are wrong about buying a house for £50k "less than its value". its value is what you pay for it and it immediately becomes the benchmark for other properties, in the form of comparable evidence. Ask any qualified valuation surveyor. Sorry to disappoint you (and your potential new neighbours who's houses will also lose value as a result of the soft deal you wnat to strike).

you also say you are in a stable part of the country away from the south east. but the south east, is economically the most stable part of the country.

you may have a large income - good for you - but your "net worth" is cruising towards MINUS £100,000 in a year or two the way you are going. why would a bank lend to someone who has nothing in a falling housing market where the person wants to borrow 95% of the value (+costs).

you should sell, rent and clear down your unsecured debts, then buy in, in 5 years, lesson learnt.