HSBC mortage - FTB 85% LTV

dokk00

I've been trawling through the forums and been reading that HSBC are declining a large proportion of their mortgage applications.
We have just submitted all our paperwork + payslips, bank statements etc.

I admit, I hadn't actually considered the possibility of rejection given that we are currently paying about 50% more in rent every month than we would on the mortgage we are applying for and can therefore easily afford the repayments.

We are FTBs, with combined salary of £87k, and are looking to borrow about 2.5x our salary on an 85% LTV in the South East. We have no adverse credit.

Do I need to worry? - particularly about the 85% LTV and 2.5x income multiple.

Also, how long does it normally take HSBC to provide a firm decision? - as I need to be getting in touch with a broker soon if the application may be rejected.

kingstreet

we are currently paying about 50% more in rent every month than we would on the mortgage...

... and this is not part of the assessment criteria used by any lender. In fact we have many threads on here about people paying double for their current mortgage, what their next mortgage will be, but getting turned down on affordability.

You should be fine, based on the other information you've given. As I mentioned in another thread on HSBC earlier, they are simply not geared up to handle the business they are getting. So they are cherry-picking more and more high quality cases and declining otherwise perfectly good business because of their processing limitations.

dokk00

Thanks for your response.

I am aware the amount spent on current rent/mortgage is not a consideration in a mortgage application. I was just using the fact that the repayments felt comfortable and, perhaps illogically, is therefore why I had not seriously considered rejection.

Any advice on the typical time taken for approval on receipt of application and supporting documents?

kingstreet

I'm sorry, there is no "standard" processing time. Some cases are quick, some cases are slow. Sit on your hands and think good thoughts...

dokk00

Would it be possible and sensible to apply with another lender as a back up plan, particularly if HSBC take a long time to make a decision?

If I were to do this, would I still be liable for arrangement fees etc. if both applications were subsequently approved?

..or is it just better that I be patient and wait it out?

Thanks.

kingstreet

I don't think such drastic action is required just yet. You may commit yourself to unnecessary expense if you do. That would depend on the lender and product you chose.

If you wait a month from application and nothing's happened, I'd think about taking my ball home TBH.

cumbria_mortgages

I have been looking for an 85% deal for some customers today and there are better deals out there than HSBC, if you are not confident in the decision I would maybe consider another lender who will also be quicker.

As an advisor I usually get an answer in around two days at most for my customers, if not the same day. I personally wouldn't be hanging around for longer than a week.

Thanks Sarah.

Procrastinator333

We are Getting a mortgage with hsbc. Mortggw now approved and survey done.

My advice is to phone them every day after you have sent your documents off. Especially in the first part where the ever so helpful "document officer" reviews all the docs. They are idiots who tell you different things and ask for different things. Just phone ever day until you are told by 3 different people the docs are ok and it is in the q for a credit assesor.

Otherwise you risk the doc officer popping a note on file saying x is missing, but nobody telling you that. Just phon whey day. It should take a week or 2 tops to make the doc officer happy. Then just wait in the credit assesor q.

Good luck.

jimjames

One thing you can do to help or at least for a backup plan is ensure you have cleared any debts and save as much as you can. At least then if HSBC do decline then you may be able to get under 75/80% for other application which would give better deal and hopefully more chance of approval.

dokk00

Thanks for the further advice. Just phoned, the application was received two days ago, has just passed the document officer and is now in the queue for the credit assessor. Seems they are dealing with it pretty quickly.

mambo69

hey, welcome to the same queue! seems like our applications are running on the same tracks