Can't port our HSBC mortgage due credit crunch: any suggestions of generous lenders?!

TEDDYRUKSPIN

I agree with Panda that for some reason that HSBC should not have giving you the personal loan after you obtained the mortgage. But being honest, if they rejected you on the personal loan in the past, all you would have done is gone to the next lender for the money? True?

Now, you are telling me that the current payment and new payment is affordable now and would be better off? You are telling me that your current property is not a gain but you have the deposit for the new property?

Would you be kind to the list following for me???

(a) Both your total net salary?
(b) Amount of mortgage required (new)? Age of both of you?
(c) monthly loan payments?
(d) credit card amounts?
(e) any monthly commitments that will always there?
(f) council tax
(g) utilities.

silvercar

Pandapaws explained on other threads that by moving with no redemption penalties, the mortgage costs stay the same, but travelling costs to work reduce considerably and journey time to work disappears; she can return to work (from maternity leave) much quicker than from her current home. I think they work shifts to reduce childcare from memory.

pandapaws

TEDDYRUKSPIN wrote: »

I agree with Panda that for some reason that HSBC should not have giving you the personal loan after you obtained the mortgage. But being honest, if they rejected you on the personal loan in the past, all you would have done is gone to the next lender for the money? True? Quite probably true! But as well as giving us a personal loan for about 24k, they handed us 2 shiny new credit cards just before Christmas, with a combined limit of £19k - we only took these as they were at slightly more attractive rates than others, so balance transferred - but they didn't know we were going to do that, we were never asked our intentions with the cards and for all they knew we could have been planning a spending spree!

Now, you are telling me that the current payment and new payment is affordable now and would be better off? We've never had any problem at all paying, new payment was potentially going to be £500+ lower, plus reduced fuel costs and about £200 other savings. You are telling me that your current property is not a gain but you have the deposit for the new property? It's a straight swap to move closer to work, saving about £500/month on fuel and eliminating the need for any childcare/enabling me to go straight back to work after 6wks maternity - both houses a smidgin under £250k.

Would you be kind to the list following for me???

(a) Both your total net salary? Gross is £78,500 combined, net £4600/month.
(b) Amount of mortgage required (new)? £225,000 (We currently owe 228 on our existing mortgage, ideally looking for a little more but could do it bare bones at 225) Age of both of you? Both 31
(c) monthly loan payments? £706
(d) credit card amounts? Currently £750, paid as fixed amounts which overpay the minimum by a fair bit. Min payments in the region of £600 at a guess.
(e) any monthly commitments that will always there? Nothing that we can't get rid of if necessary, like Sky, car costs etc (will be walking to work - it's only half a mile, so 2 cars no longer essential. But we can afford to keep them, so why not?!). None of the stuff they ask, like child maintenance etc, and no childcare costs.
(f) council tax Currently £17 a month due to previous overpayment and rebanding. Would be approx £140 in new house.
(g) utilities. Gas/elec £104, water £32. Moving to smaller house, so hoping these will drop proportionally.

Current mortgage payment is £1485. HSBC mortgage adviser was happy for us to go to HomeStart for 3 yrs, which would have dropped this to £970, by which time every other bit of debt would be totally cleared.

Hope that clears it up a bit!

Silvercar, all that you say is correct.

Just wish we'd been told at the time of taking mortgage out that portable, means 'portable, but only if we decide to do it at the time' as it quite clearly now seems to mean. We made it perfectly clear at the time that we'd almost certainly be moving house within a year or two, and we were told this was no problem at all.

silvercar

I understand that a house move requires a new lending decision. The whole point of refering lending decisions to underwriters is so that human beings can make decisions.

In this case the property value is identical, the mortgage size would be identical and the customers' costs reduced, so the "risk" to the lender actually falls. Putting a customer in a worse situation, when allowing the mortgage to be ported will not increase the banks risk, seems to go against the TCF doctrine.

bazza1603

Hi,

I had issues porting my mortgage as well with HSBC. I overpayed my old mortgage by the maximum 20 percent, and still had issues saying that I couldnot afford the extra £150 (overpayment was £98). I have no debt, and a perfect credit history.

They really went all my details before giving a positive decision, but it was a nervous time.

Wish you luck

Regards

Barry

Red_Kharma

Hello,

As a newbie poster I realise I am on a slightly sticky wicket!

Firstly, good luck in whatever you do especially with a newborn imminent.

I was struck by your numbers and plan of action though, so am commenting purely on that basis and it may explain why HSBC didn't sanction.

Your unsecured lending numbers don't stack up. Minimum repayments on circa 80,000 of unsecured debt at 3% would be around £2,400 pm. or £1,600pm at 2%. If you are only paying £600 and overpaying then you must have a lot on 0%, gambling on either rolling this over or repaying before it expires. That is a huge risk which could easily sink you if you can't roll it over.

Taking on such a high LTV mortgage, and incurring stamp duty and other costs etc etc on a new house for such a high amount just as we are entering a severe market downturn and you have the uncertainty of a new child is very high risk.

There is a very obvious and simple solution which avoids this entirely, will cut your outgoing significantly, enable you to repay more of your unsec. debt sooner and buy a home for far less. That is to rent for say 2 years nearer to work. With such a small deposit, such high debts and a falling market you are effectively exposing yourself to none of the benefits of renting but all of the risks of negative equity, reposession and insolvency by remortgaging.

Please reconsider the risk you are taking.

All the best RK

chelseablue

I was thinking the same as Red Kharma:

Cant you rent instead of buying?

These days renting is normally cheaper than buying and house prices are falling now.