Mortgage - should I go with my bank?!

markalanious

Help needed please!

I've found a house I love and we have a 10% deposit which is less than i'd like but i've looked at available mortgages and i'm happy I can afford the repayments.

Anywho, from seeing a mortgage advisor and doing my own research, i've found that my bank HSBC are offering the best rate.

Now i've been a good boy and have had no adverse credit in the last 7 years - checked on equifax recently. But in the past this wasn't the case and I had plenty of arrears and problems and had to go on a 'managed loan' with the bank for a number of years. Like I say this is all over 7 years ago though.

So what i'm wondering is, should I risk going to the bank to get one of their mortgages, given that they will probably see my bad past. Or stick with another lender who will only be able to see the normal bad credit stuff?!?

Any advice welcome!

GMS

HSBC are very picky and tend to reject more than they approve at high Loan to Value.

Worth a try if it is the best deal for you but your previous history with them may well cause issues

markalanious

Thanks GMS

That's good to know - think i'll play it safe

Out of interest - the next best mortgage deal was with Santander - I have savings and ISA's with them and also they won't know anything about my past beyond the six years that they look at - should I be alright with them?!

GMS

Impossible to say if you would be ok with Santander or not.

markalanious

Impossible - I like those odds!

Thanks again GMS

GMS

markalanious wrote: »

Impossible - I like those odds!

Thanks again GMS

Try the affordability calculator for Santander to make sure you fit on income. Thats the first thing to worry about. After that it will come down to credit scoring.

markalanious

Yes, done that - and when I saw the mortgage advisor she came out with the same mortgage. When I put all the info in, they said they'd be able to offer us about 30k more than what we actually want to borrow - so that's encouraging.

GMS

Was the mortgage adviser an in branch one for Abbey or Independent/Whole of Market?

Try the loan for £100 less than the 90%. It has been known to make scoring slightly easier with some lenders.

markalanious

it was an independant whole of market adviser. When you say less than 90%, do you mean for instance if it was a 100k house, put that i have £10100 deposit?

GMS

Yes exactly that. May not make a difference but there have been lender sales reps suggesting a £100 less application being beneficial.

Good luck with it

markalanious

when you say 'being beneficial' do you mean, there is a higher chance of them offering us a mortgage, or there is a chance we might get a better rate?