Risk using HSBC mortgage with own solicitor?

cwcw

Our situation is that we have had an offer accepted, appointed our own solicitor and got a decision in principle with HSBC. Our old mortgage is with HSBC too, but we are completing next week on our sale so it will be redeemed (still portable for up to 6 months). We are moving in with family while the purchase goes through - there is no chain at either end so we're hoping for a couple of months. We have both got current accounts with HSBC too.

However, our solicitor has warned of possible delays with HSBC due to them employing their own conveyancing panel, and also an additional cost that HSBC will charge for this. We could get a similar deal with Co Op Bank, but have the DIP with HSBC already.

Do you think continuing with the HSBC route is a bad idea if we want to move quickly? Does a DIP affect your credit score, i.e. if we have to do another one with Co Op?

On another topic, we will be applying for the mortgage from our current address but will be moved out after next week and have a temporary address. Mail will be routed to our temporary address. Is it worth changing everything over to the family's temporary address, and if we do, how do we prove address without any bills or anything to show for that address? It could get messy I think...:eek:


PS. Is there a list of the famous 43 firms on the HSBC panel? I can't find one anywhere. I guess another option, if one is actually local to me and well regarded, is to use them and not have the extra cost and delay of using my own solicitor (I have not signed the agreement yet, just notified by email, and they haven't done any work yet).

Yorkie1

There is no list available of the 43 firms, unfortunately.

Richard_Webster

OP should be able to get a list of firms if he/she is persistent in asking HSBC. A potential client of mine did this and e-mailed me the list.

cwcw

Richard_Webster wrote: »

OP should be able to get a list of firms if he/she is persistent in asking HSBC. A potential client of mine did this and e-mailed me the list.

Is it top secret or can you post it?

I notice you're a solicitor from your signature - in your experience, on average, what kind of delay would it be to have to go through HSBC's panel? It's not so much the £160+ VAT charge, though that is annoying, it's more the potential delay since we want to move fast. Our solicitor warned of a few weeks.

Richard_Webster

I would estimate 2-3 weeks delay as typical in this sort of situation.

I don't think I can manage to put the list up using my IT skills, such as they are. I have a pdf with a list of names of firms as links to their websites with their locations beside the names - there are two in Scotland and two in Northern Ireland so in England & Wales there are only 39 in fact.

However, if HSBC are pushing their panel it is only right they should give a prospective borrower the list - it would be unprofessional for a firm to accept instructions in situations where an introducer such as HSBC said they had to go to a particular firm - they must give people some level of choice.

betmunch

I think you are crazy to even think about using HSBC for a purchase right now. Just look at the comments on here.

It has cost people their dream homes due to their crazy tie up.

If you have got a similar deal lined up with ANY other lender, I would jump at that.

pinkteapot

If any other lenders can match HSBC's deal, go with them. If they can't, look at how much more the other mortgage will cost (both in up-front fees if applicable and in repayments over the life of the mortgage) and then take a view.

Yes, there are a few horror stories on here but HSBC, like other big UK lenders, deal with however many thousands of mortgages a year and they're not all going wrong.

jonas123

I wouldn't recommend HSBC at all for a number of reasons, but mainly the delay.

Particularly now due to the end of the stamp duty relief for first time buyers, there is an overload of work and Countrywide just can't handle it.

I am using my own solicitor, we had all the documents completed and sent 3 weeks ago to Countrywide, and we still haven't heard anything back, apart from the fact that they are prioritising first time buyers. I'm pretty convinced now that the seller is about to be gazumped and that'll be the end. Very annoying.

It's also cost me more than the £190 they charge you for using your own solicitor. I've had to have additional searches carried out that aren't normally required (£73) and my solicitor has charged me an extra £300 due to the extra paper work he has to fill out.

If you find a similar deal elsewhere, jump on it. It'll be much quicker and far less stressful than HSBC.

steevo_h

If you need a quick move, then HSBC are a non-starter. I have done everything possible to comlete as quickly as possible to beat the stamp duty deadline (now missed). I used my own solicitor, but Countrywide are still wedged into the process (that's who the £200 legal fee goes to). I applied 2 months ago, and am still waiting with no idea when the money will be ready (my mortgage was approved a month ago!!)

As for your DIP, don't worry. It does not show on your credit score, and doesn't matter who provides it. It simply shows the seller, that given your circumstances, you should not have problems borrowing enough money to make good on your offer.

steve1980

Richard_Webster wrote: »

I don't think I can manage to put the list up using my IT skills, such as they are. I have a pdf with a list of names of firms as links to their websites with their locations beside the names - there are two in Scotland and two in Northern Ireland so in England & Wales there are only 39 in fact.

You can send it through to me. I'll pull the text off.

patriciahale

We applied at the beginning of February 2012 for a HSBC Mortgage, we had already engaged our own Solicitor and knew we would have to pay for HSBC Solicitors, Countrywide. They have been absolutely useless. Not accountable to anyone it seems. I have read with interest the comments. It has been exactly the same for us. We have been fobbed of now for weeks. Now they realise they havent delivered they are back tracking and deny they have sat on the paperwork for over 7 days. We should have moved last week, hope to move this week, that is now looking less likely. NEVER have a mortgage through HSBC as the HSBC Mortgage Advisor doesnt follow anything up, they just leave you to deal with the problems yourself.