mortgae advice

Posted by kid (130 days ago)

I currently have a 95% mortgage on a property that I am selling and bought for investment. I have now found a property I want to live in and need to get another 95% mortgage. Is this possible or will the mortgage corporation spot this?

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Posted by uupper (130 days ago)

not possible, the bank/mortgage corporation will only provide 95% financing for your primary flat, i.e. you must reside there. for the 2nd flat, they can only provide up to 85% mortgage (this new rule became effective in Nov 2007), it used to be 70% only.

Posted by walkup (130 days ago)

Where are you in the sale process of the first property? If you have not sold it then the bank must assume that you have a mortgage liability to 2 properties. If a deposit has been paid on the sale of the first property then the bank has only to assume a risk of default from the buyer and may be more sympathetic in making you a second loan but will closely look at your ability to fund interest payments on both properties. Uuper is correct that the percentage of financing will not be so generous on the second property unless the first property has been sold. Also bank policy can vary from month to month. What was easy to do last year may be tighter now.

Posted by Christian_Moore (129 days ago)

As long as you can financially satisfy the requirements to pay the mortgage for both places Standard Chartered may give you a 2nd 95% mortgage. They don't use the Hk Mortgage Corp.