HSBC Mortgage Application - Another Self Employed App Declined

nzseries1

darrinm81 wrote: »

You pay £425 on submission but fee is refunded if application is declined.

This line does sound a bit SCAMmy to me!

But please let us know how it goes, because I'm hoping to apply for a mortgage in a few months and I'm in a very similar position to you.

Leon_W

It's not a scam so please don't be so stupid.

The company in question looks like it charges a fee for advice which it is perfectly entitled to do.

They will also refund the fee if they cannot obtain a satisfactory mortgage offer, so where is the problem ?


People who shout scam when they have no idea of what they are talking about really annoys me.

nzseries1

Leon_W wrote: »

It's not a scam so please don't be so stupid.

Not many things that are scams say that they are a scam.

Leon_W wrote: »

They will also refund the fee if they cannot obtain a satisfactory mortgage offer, so where is the problem ?

Companies who promise to write off all your outstanding credit card debt also promise to refund your fee if they aren't successful

Leon_W wrote: »

People who shout scam when they have no idea of what they are talking about really annoys me.

Apologies, I wasn't actually calling it a scam. I was merely making a tongue-in-cheek remark that that one particular line of the post sounded like it was written very much in the language of a scammer (pay us all this money now, and we promise we'll refund it later!) I'll be sure to bite my tongue in future

Leon_W

I note your post has been edited from its original format which said "scam scam scam".

The point I am making is it is a reputable company that is authorised and registered with the FSA. If such a company says it will refund if an application is not succesful then it will refund. No question. It will also have a formal complaint procedure which can be referred to the Financial Ombudsman if necessary. That is what regulation by the FSA is all about.

You seem to be confusing a mortgage company operating in a highly regulated enviroment with some dodgy claims management company operating in the wild west. It's chalk and cheese.

You cannot go around defaming perfectly legitimate businesses without expecting to be pulled up on it.

Anyway, I've made my point so perhaps we can move on and see if the OP manages to get a mortgage.

Regards

darrinm81

I will keep you posted. I actually spoke to two separate 'contractor friendly' firms - one who offered a 'refundable' fee and the other who didn't charge any fee.

Both have relationships with the same lenders and recommended the same products.
Both operate on the same idea - present your case based on current contract and recent bank statements. An adviser speaks with an underwriter and based on information & feedback presents a KFI. You still have flexibility on the final product to select.
Both provide a KFI outlining product and fees.

I am hoping that by pursuing the loan application via this method is more quick and effective than the high street experience.

DVardysShadow

Leon_W wrote: »

I note your post has been edited from its original format which said "scam scam scam".

The point I am making is it is a reputable company that is authorised and registered with the FSA. If such a company says it will refund if an application is not succesful then it will refund. No question. It will also have a formal complaint procedure which can be referred to the Financial Ombudsman if necessary. That is what regulation by the FSA is all about.

You seem to be confusing a mortgage company operating in a highly regulated enviroment with some dodgy claims management company operating in the wild west. It's chalk and cheese.

You cannot go around defaming perfectly legitimate businesses without expecting to be pulled up on it.

Anyway, I've made my point so perhaps we can move on and see if the OP manages to get a mortgage.

Regards

Your arguments are probably valid for this particular market sector. But, outfits asking for money up front for some kind of service or product that it is hard for certain people to get [visas for foreigners, accommodation] do tend to attract advance fee fraud scammers. And it would not be unknown for a scamming setup to claim registration or approval from some organisation such as the FSA.

Your initial reaction:

Leon_W wrote: »

It's not a scam so please don't be so stupid.

The company in question looks like it charges a fee for advice which it is perfectly entitled to do.

They will also refund the fee if they cannot obtain a satisfactory mortgage offer, so where is the problem ?

People who shout scam when they have no idea of what they are talking about really annoys me.

is completely over the top as a response to nzseries1's quite mild comment

nzseries1 wrote: »

This line does sound a bit SCAMmy to me!

If you had chosen to respond with a calm statement of the credentials of the company concerned, that would have been appropriate. AFAIAC, nzseries1 was perfectly justified in raising the issue - if only more people were alert to the telltale signs of Advance Fee Fraud. Your response that the fee is fully refundable only emphasises a recognisable Advance Fee Fraud trait.

Please remain to be annoyed by people raising the possibility of such a deal being a scam. It is generally the people who don't know what they are talking about who get caught by scams. I commend nzseries1 for raising the issue.

The_Palmist

Refundable fee bit always make me uneasy. It's like I promise to do something for you on a no deal no fee basis and I do exactly what you would have done yourself. It don't cost me any extra, and if it goes through, I make easy money.

Hope this is not the case for you.

darrinm81

Update...

In summary I now have a Mortgage Offer after applying through a 'contractor' friendly broker and lender. The lender had specific lending criteria that suited contractors.

While the process was a little dragged out, I knew early on I had a strong case. All the lending criteria was available online.

Here are the time lines if anyone else is interested.

Jun 30 - I was provided a KFI outlying mortgage product and application form.
Jul 01 - Answered some questions on property and my situation. Proceeded with application. At this time lender prepares an Agreement In Principle (AIP). They will not proceed any further if you do not pass this stage. If you pass this, they begin processing your case. The product I chose had an application fee which I was then charged.
Jul 04 - Mailed in contract docs, bank statements and proof of ID.
Jul 06 - Review documentation. Once satisfied they book a valuation of the property. Another fee is taken at this point to conduct the valuation.
Jul 08 - Valuation conducted.
Jul 14 - Another review of documents (final underwriting decision made subject to valuation).
Jul 15 - Verbal confirmation all complete!
Jul 20 - Mortgage offer sent electronically.

Thrugelmir

darrinm81 wrote: »

Update...

In summary I now have a Mortgage Offer after applying through a 'contractor' friendly broker and lender. The lender had specific lending criteria that suited contractors.

What was the rate you obtained?

darrinm81

The rate is competitive. It is the same rate available for 'non contractors' (ie I am not being charged/penalised a higher rate).