Anyone struggling with HSBC solicitors?

ReflexReaction

I am just in the process of looking for a mortgage. My existing mortgage is with HSBC and is a great rate!

I am now moving house, and I've been looking around. Surprisingly, I think HSBC are still offering the best mortgage around - 2.69 tracker for lifetime (2.19 above base for life!).

However, my estate agent just explained to me that they've had three sales with an HSBC mortgage this year so far, and all three are still "pending" - delayed by HSBC's solicitors who they cannot chase / speed up - they're hitting a brick wall.. He is concerned I'm looking to use HSBC again.

In January, HSBC introduced a new method whereby everything your solicitors do have to be "audited" by one of their solicitors (at a £180 price!). £180 isn't too much of a big deal for a really good mortgage, however I'm more concerned by the fact people are saying this is holding up house moves.

The last thing I'd want to do is spend £1000 on a mortgage (£599 arrangement and £300 something for valuation, plus the £180 fee for using their solicitors), only to find that they're not moving. I don't want to be forced between loosing my purchase / sale, or losing my £1000.

Does anyone have any experience with this? I have only to date spoken to my estate agent and their recommended mortgage advisor (naturally it's in the advisor's interests to recommend I don't go with HSBC - no commission for him as he cannot sell me a product).

I plan to go to my the solicitor tomorrow, to find out if they've had any experience with HSBC mortgages yet this year. However, the solicitor I am using was also recommended by the estate agent (it's a long story but basically it made my offer stronger to be using a recommended solicitor).

I have spoken with the mortgage arranger at HSBC who stated that many solicitors are claiming the delays as they're against this process. This is because HSBC are claiming "3rd party" solicitors should reduce their own fees to cover the HSBC solicitors practise. I have no reason to trust HSBC's word any more than my estate agent, who I have sold with (and am actually purchasing via too).

I am confused - I don't know what / who to believe.

Please advise!

Thanks

RR

p.s. here is some info on this new change by HSBC:

http://www.thelawyer.com/hsbc-panel-banks-on-e-petition/1011746.article

http://www.nwemail.co.uk/news/house-buyers-could-pay-twice-with-hsbc-1.931366?referrerPath=news/

http://www.myintroducer.com/view.asp?ID=9267

betmunch

We're well aware of the problems it is causing, theres loads of threads about it.

Using HSBC for a purchase can literally cause you to lose the house your going for, some solicitors are now refusing to take clients that want to use HSBC for the mortgage.

just do a search for "countrywide" and you'll soon find a load of threads about it.

Oh, and the HSBC advisor clearly isnt going to admit there are huge problems because it will cost him a sale! Use the independent accounts here to make your own decision if its worth the risk

ReflexReaction

Thanks so much for getting back to me - I don't want to make the wrong decision here and appreciate your advise

My biggest annoyance here is that HSBC are entirely the best mortgages on the market for someone like me, who wants a tracker above base for term. The closest alternative I've found is first direct. My LTV is exactly 70%, which is the HSBC tier for the 2.69%. Unfortunately the next best mortgage I've found is first direct @ 2.99% Maybe this is the best option for me - a bit more money every month but I don't have the risk of losing my sale AND my purchase!

I see you're an independant adviser - do you know of anything else I'm missing on the market? *if this is against rules appologies!*

betmunch

Would be totally against the rules as I know nothing about you so wont name any lenders.

If you are happy with First Direct then be safe in the knowledge that they are not doing this stupid link up even though they are part of HSBC (I suspect because of their amazing customer service mustnt be tainted)

ReflexReaction

Ah OK, my only concern is HSBC seem to lend 4.5x salary while FirstDirect only offer 4x - so I am not sure I'll even be able to get a mortgage with them!

I wonder, if I use one of HSBC's panel of 42 - they will also use the same people, and then hopefully I avoid countrywide and any delays... (at potential expense of having to go with a non-local, more expensive conveyencer!)...

DECISIONS! Rargh!

betmunch

Potentially you can, I do not believe the panel members are going to be any better though.

You pays yer money and you takes yer chance!

Thrugelmir

ReflexReaction wrote: »

then hopefully I avoid countrywide and any delays...

House purchase and sale is not a straight forward process, however good your conveyancer. To think otherwise would be foolish.

There's a lot of hot air in the forums. As certain people are losing business. Not helped by a flat market transactional wise.

hackedoffwithhsbc

Stay away from HSBC if you can, their new rules make house purchase a nightmare.

First, charges: if you use your own solicitor, it's not just a question of paying the extra £192 that HSBC charges, your solicitor will also charge extra to communicate with HSBC and my sellers' solicitor are also trying to pass the costs of talking to HSBC on to me.

Second, searches: HSBC is demanding a bunch of additional searches not recommended by my solicitor at a considerable additional cost and extra time to complete. These are things required to protect HSBC's investment but I have to pay for them!! In another 'delightful' twist I was told that these searches are necessary because HSBC does not know the local area I'm buying in. There's a branch 200 yds down the road and HSBC's ad campagin says it's the world's local bank: 'the world's local bank does not know the local area' - do you believe that?!!

Third, communication: As a matter of course, HSBC's solicitors will only speak to my solicitors, not to me. The only way I've got them to speak to me was through losing my temper: it's ridiculous.

I'm currently running the risk of being made homeless because of all this, the stress is affecting my ability to work and the costs are piling up every day. STAY AWAY FROM HSBC, the good deal on the mortgage is not worth the hassle!!!

steevo_h

Had exactly the same experience as HackedoffwithHSBC. I've posted my full story elsewhere so won't go into detail. Although HSBC are offering the best deal for my mortgage, the buying process has been turned into an out and out nightmare thanks to Countrywide.

My mortgage is fee free, but by the time I will have bought that 'fee free' deal will have cost me:
£1620 stamp duty as a result of 2 months of delays
£200 give or take for HSBC's legal fees (for countrywide)
£113 unnecessary extra searches
£300 extra solicitor fees for all the extra workload HSBC cause
£?? who knows how much more if this sale falls through (which is looking increasingly likely)
and I still don't have anything approaching a completion date

HSBC are not worth the hassle, pay a bit more and have a comparatively hassle free move.

phil_b_2

I completed on my house purchase a few days ago, using HSBC solicitors. The whole thing was very efficient, communication was brilliant and they even went above and beyond IMO working on my behalf to sort out a damp issue.

Cant recommend them enough based on my personal experieice, and they had the best mortgage deal on offer by a country mile.

P.S is it just me or do a lot of posters seem to just sign up or come from no where and bash HSBC? it feels like a conspiracy is going on sometimes...

SuzieSue

Read this thread:

https://forums.moneysavingexpert.com/discussion/comment/52033201#Comment_52033201