HSBC Mortgage Application

kier333

I applied for a mortgage with HSBC and it was approved, I received the forms filled them out and returned them to my branch with the requested payslips 2 days ago. I had a phone call today from the underwriters who had some questions to ask one that concerned me was a default i have, its a year old and its an ongoing issue with a mobile phone company. I explained the circumstance surrounding the default and also explained that if it would stop me obtaining the loan i would pay the mobile phone bill in full althoug 02 tell me the default would not just disappear.

I have been banking with HSBC for 6-7yrs have a loan for 7k and a credit card and have never defaulted on any of these.

I have an internal score with HSBC of 60 (what ever that means)

What are my chances of obtaining the mortgage, i now have to wait until Wednesday 11th until i have a decision.

My question is are HSBC really hot on this, the mortgage repayments are around 25% of my salary plus i have a full time well paid job which is secure.

I am a FTB WITH 10% deposit and i earn 50k a year


Many thanks in advance.

_Andy_

Hi

Really its not worth any one on the fourm speculating - e.g. if someone said 'yes you'll be approved' you may not and vice versa.
Your behavioural score is OK but not great.
You haven't stated what the LTV ( loan to value) is which would affect things.
You'd be a lot better off putting it to the back of your mind until the 11th when you'll know for sure.

kier333

Thanks, was just curious as to HSBC lending criteria, i was hoping to get a 90% LTV on a property of 150k

Just wanted some thoughts really as i was told it would go before someone else monday.

_Andy_

If the default was for a CC or loan etc that would probably be a straight decline. You'll have to hope the underwriter will be happy with your explanation and ignore it.
The reason I asked about the LTV is the higher it is, the more tight they'll be with criteria.
Just have to wait and see.

kier333

It was for a mobile phone contract i took in my name for an ex partner, we broke up and she just run up the bill.

So do you or anyone think with a 90% LTV in the current market its still possible? seems like it had to go before another person for final approval, so was not completely declined.

ANY THOUGHTS WOULD BE GREAT....I'M REALLY CONCERNED

brightbuy

Dear kier333,

Brokers do not have access to HSBC or First Direct as they are exclusive. Therefore, there will not be many mortgage advisers on this forum that could provide suitable advice on their criteria or underwriting procedure.

Based on my knowledge of other lenders, a default will be a concern with any major lender, especially if it is ongoing. Although your internal credit history with HSBC is a great assistance. I believe that the score you have with them is an average internal credit score ( I am an HSBC customer myself).

Robert_Sterling_3

I think the phone bill default will count against you.
It is your account. What is there to dispute.