Mortgage declined by underwriters after mortgage manager being so positive!!

firsty

Conrad wrote: »

Why so cross? The Daily Mail has been crusading against loose lending for years ,and the public has had it's wish granted.

This is the thing; 'Other peoples' borrowings to the Daily Mail reader are 'outrageous' 'ridiculous' but when it comes to thier turn of course, thier own application is affordable in thier minds - always.

10% is a tiny deposit - get saving

We can afford 15%, but it would just make things a little tighter in the short term.
But of course, wish we had have put down 15% now as may have by passed the underwriters... plus the house we want is a tidy 5 figure price, so we are not acually borrowing as much as others seem to be...

GMS

The amount of borrowing is not the concern of the lender from the point of security. The LTV is as the higher the LTV the less the lender has to play with if they need to take possession.

Afordabilty is key to loan amount but 10% of 100k is as quickly lost as 10% of 300k in the event of a forced sale.

Thrugelmir

firsty wrote: »

The maddening thing is, we both have enough savings to pay off the amount used in the overdrafts, - if we were told before our application went off to the underwriters, we would have paid it off.

You should be venting anger at yourselves.

Why pay overdraft interest charges and interest when you have savings.

From an impartial point of view I see where HSBC are coming from. HSBS can only judge on the facts as presented.

firsty

Thrugelmir wrote: »

You should be venting anger at yourselves.

Why pay overdraft interest charges and interest when you have savings.

From an impartial point of view I see where HSBC are coming from. HSBS can only judge on the facts as presented.

As you can see from my OP, we certainly are - all paid off now though, it was that easy - lesson learnt! Thanks.

dkb

If you had paid the overdraft off from your savings before sending in the bank statements and it showed previous months you were using it but then it had been paid off this month do you think you would have been successful?

_Andy_

Senior_Paper_Monitor wrote: »

What is a "mortgage manager" ??

It's their pompous term for their mortgage advisers/sales people in branches.

alipops1986

I really feel for you, to a point.

I've had exactly the same happen to me because of HSBC! Saw mortgage advisor lady, all was going swimmingly.
She said i was perfect - no credit card debt, never been in an overdraft, only student loan, could more than afford what i was asking to borrow etc.
Then i get turned down by the underwriters because i didn't use my account with them - to be honest, i thought i'd closed it down but obviously not, therefore it sat there for 2 yrs with .36p in!
Anyhow, i was obviously shocked/livid because i had been led to believe all was okay. Mortgage lady passed the case onto her superior, who managed to argue the toss with the underwriters.
In the end, i got the mortgage AND they waived the fee, plus perhaps the best thing - the % of interest had lowered during the time it took them to argue it all out!

motherofstudents

My son and his girlfriend applied to HSBC and were turned down but then approached Halifax and no problems at all. They 'only' had 10% deposit (which when you think about it is a lot of money- our first mortgage was 100%). I know things are different now but young people have a hard time starting out these days. Anyway, they completed today so there is hope for FTBs and to firsty good luck, I hope you get your mortgage.

firsty

dkb wrote: »

If you had paid the overdraft off from your savings before sending in the bank statements and it showed previous months you were using it but then it had been paid off this month do you think you would have been successful?

No, I don't think we would have been successful (mortgage manager more or less told us so), I think that we need to show at least 3 months not using our overdraft. We are planning on reapplying with same bank in 3 months, but if we get an offer of mortgage elsewhere in the meantime, then we'll go with that. But, then again, if the house we've set our hearts on is sold in the meantime, then we'll lie low for a while, and try again in 6 months-year.

firsty

alipops1986 wrote: »

I really feel for you, to a point.

I've had exactly the same happen to me because of HSBC! Saw mortgage advisor lady, all was going swimmingly.
She said i was perfect - no credit card debt, never been in an overdraft, only student loan, could more than afford what i was asking to borrow etc.
Then i get turned down by the underwriters because i didn't use my account with them - to be honest, i thought i'd closed it down but obviously not, therefore it sat there for 2 yrs with .36p in!
Anyhow, i was obviously shocked/livid because i had been led to believe all was okay. Mortgage lady passed the case onto her superior, who managed to argue the toss with the underwriters.
In the end, i got the mortgage AND they waived the fee, plus perhaps the best thing - the % of interest had lowered during the time it took them to argue it all out!

Mortgage manager did go back to underwriters to 'argue' our case again, as he disagrees with the decision, but unfortunately wasn't successful. My partner has been banking with HSBC for over 10yrs, still using his accounts, but this didn't seem to help matters. Well done to you for getting there in the end - you deserved it after all!!