FTB & HSBC Mortgage

sympatex

Hi all,
just a few questions to see if anyone else has been through what we're about to go through!

We've found a house we really like after over a year of searching and 2 failed bids on other houses. Which in hindsight i'm glad fell through as we're now looking at gaining extra bedroom, large garden and numerous other bonuses to boot.

Originally i went through a mortgage broker and although i was happy with their service we never actually took a product out with them because we didn't get to completion on either of the other houses. Over the year i've done alot of research myself and feel confident i can avoid most pitfalls off dodgy mortgages with exit fees, ERC's etc.

I'm planning on seeing HSBC as they seem to be the only FTB friendly lender out there at the moment with halifax,nationwide and abbey all demanding 25% deposits, we only have 10%.

So i've decided the 5.69 3yr fix is probably our best bet, although i'd speculate interest rates to go down over the next year or so it's not worth the risk of them going up, we're having to borrow 3.7x our joint salaries! I've looked through and it does have an ERC but so does the discount and as mentioned can't risk a tracker.

So question is, has anyone been to see HSBC and dealt with their "mortgage" people and do they behave like a broker for their own products (obviously) and help you complete the forms and tell you all that you need to do or is it, 'here's a bunch of papers, fill them out correctly without our help, if you make a mistake it will just go into a black hole and never be seen again'.

Thanks for any advice!

_Andy_

You have two options with HSBC

1) Do it over the phone - initial credit check is done, quote done, pre-filled application is sent for you to sign and send back with proof of ID, payslips, etc..

2) Do it in branch - if you require advice on the products this can be given in branch but sounds like you don't need that.

Depends on your preference - some people prefer to see someone face-to-face, or if time is of the essence and you don't want to take 1-1.5 hours out of your day to go into a branch, just ring 0800494999.

Remember that with HSBC the booking fee for the rate needs to be paid upfront.

Hope this helps.

sympatex

Thanks for the reply Andy, i didn't know that about their fee's, hmm that could be quite a substantial add to up front costs. Their booking fee is their arrangement fee isn't it? its justi n BTL mortgages they seem to have an arrangement fee and a booking fee but it doesn't mention it on the residential loans.

~Beanie~

The fee for that product is £999, it does say that on their website.

Diddidi

Yes - I have just taken out a mortgage with HSBC just one month ago. I completed the papers online and then I had to go into a branch to see an 'advisor'. They did not provide any other means for me since I don't have an HSBC bank account (not sure if this is different if you have an account with them).

Since I already knew exactly what I wanted, we ended up just completing the paperwork in the branch and that was that. I was given all the help I needed along the way. Then they put you touch with their solicitors for the paperwork prior to completion.

I had a slight issue post completion with some incorrect details on file - I did get a bit expasperated with their telephone customer services but I went into my local branch and they were really very helpful.

sympatex

Diddidi, ah ok, i am not an account holder but my gf is. we'll probably still go in to make sure we can talk through all the prequalification stuff, they have a lot of links on their website for this, that and the other, although i've gone through them i'm sure i don't have all the facts!
Did you have to use their sols? I had planned on using my own local ones as i can go in a hassel them if something is wrong.

_Andy_

No, you don't have to use their sols.

Toughluck

Why are you worrying about a booking fee? If you really don't like it don't buy it. If it was an arrangement fee with them it can be added to the mortgage, if you are "booking" the rate then you have to pay it up front just as with your local searches etc.

_Andy_

HSBC don't capitalise fees at the moment.

luckyfool

Halifax, Nationwide etc. don't require a 25% deposit, they just offer a better rate for a 25% or 40% deposit. You can get a FTB mortgage from either Halifax or Nationwide with as little as a 3% (Halifax) or 5% (Nationwide) deposit.

Toughluck

Cheers Andy.

For the OP, if ERC's are a problem for you regarding the future Leeds Building society do a 2 yr fix @ 6.25% with no ERC.