Mortgage declined after AIP given - but I've already sold! Help!

curiousftb

What a mess.

HSBC agreed to an agreement in principle last month. I am fully aware it's not a binding agreement, just an illustration, but it makes one feel safe about spending enormous amounts of time looking for houses. Given that I've got a 928 credit score with Experian, a 45k base salary and very little debt (as well as a a 20% deposit), I wasn't surprised when they gave me the AIP. So my boyfriend put his flat on the market (it sold within 48 hours) and we found a new place to buy in my name, offered and were accepted. However, I was VERY surprised when HSBC then went through the phone application with me and told me no. I feel awful for the chap that was hoping to by the BF's flat as he's already paid for a survey. I also feel awful in general. I'm pretty sure (as they confirmed they believed the mortgage to be affordable and that it was a rating problem) that they denied me because we went overdrawn on our joint account last month. This was the fault of HSBC - they moved a load of direct debits over to it from my current account so we went overdrawn. They've since apologised and offered me £75 as compensation for this but I went into branch today and they've told me that their mistake has affected my "behaviour score". They told me to come back tomorrow with a copy of my experian report and they can write to their underwriters and point out this wasn't my fault - but should I bother? Or should I just try another lender? I was thinking of the Woolwich. Time is growing short and the other two people in our chain are growing impatient. I'm aware that I've now also got a rejection on my record courtesy of HSBC, any thoughts?

Any advice / thoughts appreciated, thanks!

The_J

Go elsewhere, complain to HSBC, get compensation. Take your banking elsewhere.

HSBC are a terrible bank.

Dave_Ham

HSBC top my personal naughty list for behaviour exactly like this.

Search this forum for "HSBC mortgage" and you will not find too many happy customers..

Rates great, flexibility and common sense not so.

Firstly, take a deep breath and do not overthink this. From what you have said the other banks will be fighting over your business and you certainly do not have to put the buyer off.

Next, do not let the Estate Agents get wind of this and just tell them to back off you will get survey done asap

Go to a sensible bank, or go to a sensible broker who will get you a sensible deal.

You are unlikely to get exactly to the HSBC rates, but close enough for it not to hurt too much.

Do complain to them, but they are unlikely to overturn decision...

betmunch

Spot on from the quicker posters than me!

I woul dparticularly like to echo the bit about not telling the EA..... yet.

If you get turned down by the next bank then tell the EA, but for now just crack on with a broker that knows the market and who will lend quickly at competitive rates.

curiousftb

Thanks everyone, will do so. Cannot believe it! They claim they'll remove my credit rejection thing from my experian report but it still makes me so angry! Grr.

Thank you MSE Woolwich, here I come...unless anyone can suggest another bank better known for lending?

The_J

Woolwich are also terrible But not as bad...

Dave_Ham

Woolwich are noticeably better than HSBC though to be fair.

I wish you well

The_J

Since they basically reduced the amount of business to a trickle they are certainly way better. And to their credit, they don't lie.

jonas123

Consider it a blessing in disguise - it will be much quicker to go through another bank than HSBC. They have caused me so many issues recently - 4 months down the line and I haven't completed! I'm a FTB and I'm the one holding up the chain....

curiousftb

Jonas123 - how awful! Maybe you're right and it wasn't such a bad thing. Perhaps Woolwich will be better. Just sent the paper application off today so fingers crossed. Thank you all for your help

billybear1

Keep us posted