"non-mainstream" mortgage lenders

jason1231972

Sorry if this has been asked before.

We have an FTB AIP from a mainstream lender (HSBC). I understand that an AIP is not a done deal! I'm confident about 'getting' the mortgage when the time comes for full application because:

1) it's very small (piddling monthly payments, and approx 1.1 x joint salary)
2) it's low(ish) LTV
3) myself and my OH have good credit histories, ne'er a missed payment in decades

However, being a FTB, this is all new to me, and I have some unfounded paranoia about HSBC laughing us out of branch when we fully apply. Part of it stems from the experiences of 3-4 mates a couple of years back who all wanted to take on 100%+ mortgages just at the onset of the 2008 financial crisis. There were mainstream knockbacks galore, and all but one of this bunch ended up going down what they termed to be the "backstreet" route, with mortgages procured via brokers. Nowadays, negative equity abounds amongst them!

My/our experience is obviously quite different from theirs, but the ill feeling remains.

So, I'm wondering out of curiosity really - who are the non-mainstream lenders? What are the names of these companies?

Also, at what point does one give up on the mainstream mortgage route and take it non-mainstream?

ACG

There is a wide gap between what your going for and what your asking for.

HSBC appear to go after the best of the best and have strict criteria.
You then have companies in the middle - Halifax, Nationwide, Abbey, Co-op etc.
You then have companies who take the biggest risk and charge the highest rates - GE money springs to mind.

If you get declined by HSBC, you would have to find out the reason why but it does not mean you couldnt go elsewhere on the high street.

If you were to be declined by one of them or find out the reason you have been declined is something a high street lender wouldnt touch you on then you can go looking elsewhere. But you are a long way from that by the sounds of it.

opinions4u

Halifax, Nationwide, Nat West, Barclays, Co-op, Skipton, Lloyds, C&G, First Direct, RBS would be good examples of "mainstream".

jason1231972

ACG wrote: »

There is a wide gap between what your going for and what your asking for.

HSBC appear to go after the best of the best and have strict criteria.
You then have companies in the middle - Halifax, Nationwide, Abbey, Co-op etc.
You then have companies who take the biggest risk and charge the highest rates - GE money springs to mind.

If you get declined by HSBC, you would have to find out the reason why but it does not mean you couldnt go elsewhere on the high street.

If you were to be declined by one of them or find out the reason you have been declined is something a high street lender wouldnt touch you on then you can go looking elsewhere. But you are a long way from that by the sounds of it.

Thanks for the info. I'm just paranoid, and also didn't really consider that HSBC could be considered stricter than anyone else. I've heard they're strict per se, but naturally assumed all the big boys would be equally so.

Sorry to pester, but could you shed some light on what makes them 'strict'? I have a couple of little niggles to pick people's brains about on here. Sorry, I'm an idiot!!!

1) I get paid my wages in cash (partner gets paid into our now joint HSBC current account, which was formerly hers alone). My income is of course legitimate and I have wageslips, P60s and so on (been in the same job for years). Just have an old fashioned boss! My part of the mortgage application thus far already indicates that I get paid by cash/cheque.

2) My partner has a personal loan (with HSBC, who else!) with an o/s balance of £3600. She's paid it fine, of course. It'll end in March 2014. This £3600 is our only debt, but represents about 15% of our (low) combined annual salary. She owes something daft like £400 on her (HSBC!!) credit card which is due to be paid off in full.

Any issues there that indicate HSBC would run screaming? I can't think of anything else bad - both of our credit files are very much in order.

Mishomeister

There are posters in the HSBC branches windows saying 9 out of 10 mortgage applications for first time buyers were agreed by HSBC last year. Surely Office of Fair Trading would get involved if it was a lie.
I have a sneaky feeling that all that fuss about HSBC mortgages being much harder to get than the ones elsewhere comes from estate agents and brokers as HSBC does not sells it's mortgages via brokers and the latter do not get their commission and therefore trying to convince customers to get the mortgage from them instead.
If your main account is with HSBC your highest chances are there not elswhere

jason1231972

Mishomeister wrote: »

There are posters in the HSBC branches windows saying 9 out of 10 mortgage applications for first time buyers were agreed by HSBC last year. Surely Office of Fair Trading would get involved if it was a lie.
I have a sneaky feeling that all that fuss about HSBC mortgages being much harder to get than the ones elsewhere comes from estate agents and brokers as HSBC does not sells it's mortgages via brokers and the latter do not get their commission and therefore trying to convince customers to get the mortgage from them instead.
If your main account is with HSBC your highest chances are there not elswhere

Hope you're right

My main current account is elsewhere, but as said I've now become joint on a very well-managed and long-held HSBC account. I had a sneak at her 'cusomer behaviour score' (for what it's worth - nowt!!) in branch the other day, and it's 80-something out of 100. She has everything with HSBC. If HSBC manifested itself as a man, I'd be dumped...she's in love.

opinions4u

There are posters in the HSBC branches windows saying 9 out of 10 mortgage applications for first time buyers were agreed by HSBC last year. Surely Office of Fair Trading would get involved if it was a lie.

So that means they decline 10% of FTB mortgage applications that previously passed at AIP stage.

They could decline 99% of AIPs and still pass 90% of applications.

GMS

Mishomeister wrote: »

There are posters in the HSBC branches windows saying 9 out of 10 mortgage applications for first time buyers were agreed by HSBC last year.

May well be true but to get to an application stage an initial decision (Decision in Principle) would be made. This is where the rejections happen.

Admitting to rejecting 10% of applications which have already been agreed in principle would appear to be the case.

Mishomeister

GMS wrote: »

May well be true but to get to an application stage an initial decision (Decision in Principle) would be made. This is where the rejections happen.

Admitting to rejecting 10% of applications which have already been agreed in principle would appear to be the case.

Around 30% of applications are made without a DIP in the near past.
Also OP already had DIP agreed so chances of being accepted therefore are 90%

ACG

HSBC seem to be strict going off the stories on here.
They have what appears to be quite unusual criteria that people cant work out. However at 1.1x joint income i wouldnt worry too much.

princessdon

I have to say we are in a strong(ish) financial postion too. Asking for 1.1 salary base and under 1 x with bonus/OT. Have a LTV of 30% and never missed a credit, yet I came off the phone with HSBC feeling down and a bit dispondent. They queried why we wanted a %age on interest only and really covered their base on how this was to be paid.

I know it's their money, their rules but they do have a habit of making you feel nervous about future decisions, tis a wee bit scary as an experience.