HSBC Morgage Paperwork Question

Bluebirds1975

Having had an offer accepted on a house yesterday I contacted HSBC (who I bank with) to arrange a 5.89% lifetime tracker.

Spent about an hour on the phone and ran through income, out goings etc etc and gave me a quote. Once I agreed I was happy she proceed to the application stage. Completed everything.

I was put on hold while the lady submitted my application for a credit check and to obtained the decision. She came back and said "good news its gone through"

At this point she took the details of the property we had made an offer on and the details of the solicitor we are using.

she said that paperwork would be sent out to sign and could be returned to the branch along with ID and the last 3 wage slips. This would then be looked at again by another department on receipt of the completed paperwork (she did say which department but can't for the life of me remember!!)

My question is can this application still be declined/withdrawn once the paperwork is returned back to HSBC?

Sorry if this sounds a silly question but we have the jitters as this is our first step on the property ladder and HSBC stated that it will take about 2 weeks to complete the paperwork. Plus we both only have an average credit score and after applying heard HSBC are very picky and look for squeeky clean credit files.

Is it worth checking other lenders while we wait?

asandwhen

You have had a decision in principal so yes HSBC can still change there mind on a number of different factors but aslong as you have told them the truth and they dont "pull the rate you should be fine"

The things they will be looking for now are -
Do you earn what you said you earn?
Is the house worth as much and you said it was?
Are you in any more debt than you said you was?

Like I say if you have been honest then you should be ok.

Bluebirds1975

Thanks for that.

I had a DIP last week from them and that didn't involve a full application, credit check, and details of my solicitor. I spoke to the same lady this time and the process was far more in depth than last time.

asandwhen

You cant have a full DIP without a credit check - its called an illustration.

Wutang_2

"You cant have a full DIP without a credit check"...incorrect

RBS agree in principle and then credit check later

thats why they are great

boinging_2

I'm currently going through a HSBC mortgage application and it has been as follows:

1) Key facts illustration done which looks at the credit score but does not leave any registration on it.
2) Agreement in principle based on full credit check (mark left on credit file) and signing of application
3) Application sent to mortgage processing department with copies on payslips and details of house etc.
4) (3 days later) Formal offer sent which is signed and sent back to Mortgage Processing.
5) (5 days later) HSBC valuer to sent property and report sent back to HSBC
6) (2 days later) HSBC all happy with the valuation and approve the mortgage.
7) You then get 6 months to draw down the funds for the purchase.

Margin_Walker

A mortgage application with hsbc tends to go through 3 main stages if done over the phone:

1. Quote where DIP and application pack are issued

2. Application along with supporting documents are sent back to an underwriting department to approve the mortgage(at this stage the application can still be declined). Any booking fee is taken when it is approved.

3. Application is then sent to the Mortgage Service Centre where offer documents are sent subject to a satisfactory valuation. At this stage you should be ok unless the property is downvalued.

Vincenzo

boinging wrote: »

I'm currently going through a HSBC mortgage application and it has been as follows:

1) Key facts illustration done which looks at the credit score but does not leave any registration on it.
2) Agreement in principle based on full credit check (mark left on credit file) and signing of application
3) Application sent to mortgage processing department with copies on payslips and details of house etc.
4) (3 days later) Formal offer sent which is signed and sent back to Mortgage Processing.
5) (5 days later) HSBC valuer to sent property and report sent back to HSBC
6) (2 days later) HSBC all happy with the valuation and approve the mortgage.
7) You then get 6 months to draw down the funds for the purchase.

This has been my experience too. What concerns me is that HSBC have taken the (non-returnable) booking fee and issued the mortgage offer (which I have returned) BUT the val is booked next week.

Whilst I am very confident that it will stack up (LTV is c. 65%, mortgage only requires 90%), this seems a little odd to me. If they decide the property does not offer sufficient security they can pull out and keep my booking fee!

boinging_2

Vincenzo wrote: »

This has been my experience too. What concerns me is that HSBC have taken the (non-returnable) booking fee and issued the mortgage offer (which I have returned) BUT the val is booked next week.

Whilst I am very confident that it will stack up (LTV is c. 65%, mortgage only requires 90%), this seems a little odd to me. If they decide the property does not offer sufficient security they can pull out and keep my booking fee!

I've taken a fee free deal so can't comment on when the fees are paid, but this does sound unfair.

On a positive note the HSBC valuation for my mortgage did not down value the house at all versus purchase price, so hopefully if you've got a good deal there should be nothing to worry about.

y3andy

I'm in exactly the same position. Remortage just been accepted by HSBC and they have just taken the booking fee (£799 :eek: ). Valuation is next. Should be ok with LTV but it doesn't stop you worrying that the valuation is going to come back a lot lower.

I was told by HSBC that they check the house price firstly on some online datebase they use and if the LTV is over 80% then they would come round and do a proper valuation.

Fingers crossed for me.

Bluebirds1975

boinging wrote: »

I'm currently going through a HSBC mortgage application and it has been as follows:

1) Key facts illustration done which looks at the credit score but does not leave any registration on it.
2) Agreement in principle based on full credit check (mark left on credit file) and signing of application
3) Application sent to mortgage processing department with copies on payslips and details of house etc.
4) (3 days later) Formal offer sent which is signed and sent back to Mortgage Processing.
5) (5 days later) HSBC valuer to sent property and report sent back to HSBC
6) (2 days later) HSBC all happy with the valuation and approve the mortgage.
7) You then get 6 months to draw down the funds for the purchase.

Thanks very much for this. Sent all of my paperwork back on Wednesday and had a call from the morgage processing department yesterday to say the morgage has been approved:T

They will arrange a valuation next week which should be ok as the house was up for £224.995 and we got it for £190.000 plus there is a simular house for sale in the street for £249.995