Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • lt88
    • By lt88 16th Apr 17, 5:29 PM
    • 2Posts
    • 0Thanks
    lt88
    First time buyer - Is HSBC DIP realistic?
    • #1
    • 16th Apr 17, 5:29 PM
    First time buyer - Is HSBC DIP realistic? 16th Apr 17 at 5:29 PM
    I'm a first time buyer and have found my dream house. I'm due to view next week and wanted some advice before I built my hopes up too much!

    My income is £20,205 and I'm on a permanent contract, no probation period I changed jobs in October 2016.

    I have 30,000 deposit and my parents are going to gift me £10,000 if needed.
    I've completed a DIP with HSBC and they've said they'd lend me £92,000. How realistic is that figure? DO HSBC usually offer near to their DIP figure? I completed the DIP using approximations for household bills after speaking to parents/friends on what their bills are etc...

    I completed the Nationwide mortgage affordability calculator and that indicated I could lend £80000ish so I'm a bit worried about the difference. Nationwide didn't ask for how much I'd spend on bills they said they take that into account.

    I'm 29, single, no dependents. I own my car outright and have no loans. I've had mobile phones on contract before and had no missed payments etc... I've also had a credit card for 4ish years that has always been paid in full by direct debit each month, although I haven’t used it for a while.

    My current commitments are:
    My mobile phone is £10 a month PAYGO.
    My car insurance is £250 annually.
    My road tax is around £200 annually but I need to look up the exact figure.
    I spend approx £60 per month on fuel to and from work.
    My pension contributions are £95 per month.

    The property is a 2 bedroom terrace house and is listed for £125,000
    The Council Tax is £926 annually (77 per month if paid over 12 months) and a quote for buildings/content insurance is £9 per month.

    Is it likely that HSBC will lend me close to £92,000. I think there may be a tiny bit of movement on the price of house but probably only a few thousand. I was hoping to get an indication of how realistic the DIP figure of £92,000 is?

    Any help/advice would be much appreciated!
Page 1
    • Thrugelmir
    • By Thrugelmir 16th Apr 17, 9:47 PM
    • 55,158 Posts
    • 48,348 Thanks
    Thrugelmir
    • #2
    • 16th Apr 17, 9:47 PM
    • #2
    • 16th Apr 17, 9:47 PM
    Is it likely that HSBC will lend me close to £92,000. I think there may be a tiny bit of movement on the price of house but probably only a few thousand. I was hoping to get an indication of how realistic the DIP figure of £92,000 is?
    Originally posted by lt88
    Try the phone option rather than online. That may provide greater certainty.

    A few thousand is worth having. All adds up to lower monthly repayments for many years.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • rjwr
    • By rjwr 16th Apr 17, 11:30 PM
    • 282 Posts
    • 185 Thanks
    rjwr
    • #3
    • 16th Apr 17, 11:30 PM
    • #3
    • 16th Apr 17, 11:30 PM
    The way to look at negotiation with house prices is its your money. As these numbers are what i call paper money, often a few thousand doesnt seem that much.

    If you had a few thousand in your bank, that would be much different,
    • lt88
    • By lt88 17th Apr 17, 2:01 PM
    • 2 Posts
    • 0 Thanks
    lt88
    • #4
    • 17th Apr 17, 2:01 PM
    • #4
    • 17th Apr 17, 2:01 PM
    I will definitely be trying to negotiate the price down, I've looked at sold prices in the area and there's another house on the road under offer so I'll have that to reference as well.

    I was hoping someone would be able to give me an idea of how realistic my DIP is, the massive difference between what the Nationwide would lend compare to HSBC is just making me feel a bit anxious!
    • amateur house
    • By amateur house 20th Apr 17, 9:41 PM
    • 226 Posts
    • 200 Thanks
    amateur house
    • #5
    • 20th Apr 17, 9:41 PM
    • #5
    • 20th Apr 17, 9:41 PM
    I got my mortgage with HSBC and in the interview the advisor asked about my outgoings each month to work out how much would be left to pay the mortgage. You should be able to work out what the mortgage will be each month from their website, choose which type of mortgage you want and then put the amount in the calculator. The £92,000 is probably the maximum, how much they will actually lend will depend on your other financial commitments. Good luck!
    • tom2205
    • By tom2205 21st Apr 17, 9:37 AM
    • 42 Posts
    • 15 Thanks
    tom2205
    • #6
    • 21st Apr 17, 9:37 AM
    • #6
    • 21st Apr 17, 9:37 AM
    HSBC DIPs are usually pretty solid yes. If they have said yes at this stage and nothing changes on the full application compared to what you've keyed at the DIP stage then I wouldn't be concerned if I was processing the application. Nationwide sometimes come back with higher figures, sometimes lower but don't be put off by the difference in figures.
    I am a Mortgage & Protection Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,856Posts Today

6,605Users online

Martin's Twitter
  • Shana tova umetuka - a sweet Jewish New Year to all celebrating. I won't be online the rest of t'week, as I take the time to be with family

  • Dear Steve. Please note doing a poll to ask people's opinion does not in itself imply an opinion! https://t.co/UGvWlMURxy

  • Luciana is on the advisory board of @mmhpi (we have MPs from most parties) https://t.co/n99NAxGAAQ

  • Follow Martin