Offer in Principle but all details are wrong?

Okydoky25

DH applied for a Moetgage with HSBC a couple of weeks ago over the phone. He was offered a MIP and everything was sent to him in the post to sign & return together with required documentation.

All good, offer accepted on house. We received paperwork from HSBC only to find loads of incorrect data. 1stly the spelling of his name!! Other bits like it says it's a gifted deposit but it's not it's my (our) savings just in my savings account not joint. (married) tho I'm not going on mortgage as I have no income as a SAHM. Another reason is im not a 1st time buyer but he is so for best rates i may as well stay off it. Also says £192 amonth for 'other commitments' childcare etc. However he has no financial commitments and I look after our child at home.

Any ideas? I'm assuming just the fact the name is spelt wrong that no credit check has been done so worried that the will find a reason not to offer us the mortgage. Main worry is we have moved around a lot altho his job has been the same for 7+ years.

harvey115

You should call HSBC as soon as possible to correct these mistakes.

It could be that the search may have been done with an incorrect name, so your best bet is to call HSBC and see what they have to say about the difference in your application.

Best of Luck

Okydoky25

DH did this last week and was told to just highlight and correct mistakes and bring everything in branch to be scanned over. We did this on Saturday but was just told not to worry it will be processed and he should hear by the end of the week.

The mortgage he chose came with a free valuation so I assume this won't be arranged until we receive a full mortgage offer?

harvey115

HSBC deal with customers directly, so brokers may not be able to help you with advise on this case as the process is not visible to anyone outside of HSBC.

I think you should just do as requested by HSBC and wait for the outcome.

Having said that, HSBC are amongst the strictest lender in the lending market at the moment.

If you are a straight forward case and only the mistakes in the name other details are of an issue, hang on to HSBC. Otherwise you can contact a broker to see if you can get a good deal if not the same with another lender in time. At least you would have something to fall back on in case this does not work out correctly.

Hope this helps.

Okydoky25

We went to a broker before DH contacted HSBC but after he looked into what he had to offer he admired he couldn't beat or math HSBC. It's only now I am reading how strict they are and wondering if it's worth trying another route or holding out and hoping it will be fine.

We already know the valuation will be fine as we pulled out of previously buying the same house a few months back after having the valuations completed but the sellers eventually came back and accepted a lower offer due to some minor issues. The house itself is valued at more than what we are now paying and our deposit is 10%

Wh05apk

Do HSBC offer different deals for first time buyers?

They will likely not accept the deposit from you, but will likely lend as much with you named, as they are probably still treating you as a dependent (unless they have fiddled the application to say he is single?) so you should be named on the mortgage and deeds.

GMS

90% LTV with a married couple single application with deposit coming from a person not party to the mortgage but residing is not a great scenario for any lender, especially one as picky as HSBC.

DVardysShadow

Okydoky25 wrote: »

DH applied for a Moetgage with HSBC a couple of weeks ago over the phone. He was offered a MIP and everything was sent to him in the post to sign & return together with required documentation.

All good, offer accepted on house. We received paperwork from HSBC only to find loads of incorrect data. 1stly the spelling of his name!! Other bits like it says it's a gifted deposit but it's not it's my (our) savings just in my savings account not joint. (married) tho I'm not going on mortgage as I have no income as a SAHM. Another reason is im not a 1st time buyer but he is so for best rates i may as well stay off it. Also says £192 amonth for 'other commitments' childcare etc. However he has no financial commitments and I look after our child at home.

Any ideas? I'm assuming just the fact the name is spelt wrong that no credit check has been done so worried that the will find a reason not to offer us the mortgage. Main worry is we have moved around a lot altho his job has been the same for 7+ years.

No reason for you not to go on the deeds of the house and on the mortgage as a SAHM. Only really enters into consideration if you have a poor credit record - which is probably not the case as you are providing the deposit.

With you not on the deeds of the property, the application is correct - it is a gifted deposit. As I see it with you on the mortgage, the deposit becomes 'own funds' which looks a heck of a lot better.

Turning to the childcare, I think that the £192 may actually actually be the assumed cost of a dependent child. But if it actually means the cost of child minding, the fact that you are not on the mortgage may mean that your OH is deemed to have some responsibility for paying for child minding.

A lot of this hinges around your choice not to be on the deeds and the mortgage. Please reconsider on this - IMO a wife should be a full equal partner in owning a home.

Okydoky25

Do you think it's worth me being on it then? As I said I'm not a 1st time buyer like my husband so we would lse the better rates he is offered? Also the deposit is not loaned from me, it belongs to us both, if anything mainly his as I don't earn a wage anymore it just happens that we still continued to use the savings account I opened when we were saving for our wedding the money could easy be put in our joint account or even his own personal account if it would help?

I understand I would have no legal interest in the house should we split altho we have children. He has a cash life cover for which I would receive enough to buy the house outright if the worst would happen so I would not have to lose the house.

Also we could have done 85% ltv but the rates were no better so we chose to keep the cash for the renovations we want to do is that not a good idea?

Okydoky25

DVardysShadow wrote: »

No reason for you not to go on the deeds of the house and on the mortgage as a SAHM. Only really enters into consideration if you have a poor credit record - which is probably not the case as you are providing the deposit.

With you not on the deeds of the property, the application is correct - it is a gifted deposit. As I see it with you on the mortgage, the deposit becomes 'own funds' which looks a heck of a lot better.

Turning to the childcare, I think that the £192 may actually actually be the assumed cost of a dependent child. But if it actually means the cost of child minding, the fact that you are not on the mortgage may mean that your OH is deemed to have some responsibility for paying for child minding.

A lot of this hinges around your choice not to be on the deeds and the mortgage. Please reconsider on this - IMO a wife should be a full equal partner in owning a home.

Thank you for this. I think our reason and it my decision fully my husband is happy to do whtever is because I am not a FTB where as he is. We enquired about me being on the deeds but a broker advised this would not be allowed as no mortgage provider will let me have an interest in the property which is understandable.

DVardysShadow

The first time buyer incentives all depend on the definition of FTB used by the lender. It used to be 'not having owned property within the last 6 months'. The definition used by HMRC with the FTB stamp duty holiday was 'never ever been even a part owner'.

But to a fair extent it is artificial. Why should other people have to pay a higher rate for not being FTB? Why would people who are not truly virgin FTB's not be worthy of the same rate as an FTB? You could say previous owners with a clean payment record are a much safer bet that entirely unknown FTBs. If you and OH as a unit have never together owned property and neither of you have any current interest in owning, I would suggest you give it a try. Or you say what your circumstances are and ask whether they will give you that particular rate.

As the deposit is joint money, you should start from the assumption that you should go on the mortgage. If you go down the current path, half of it is gifted and as part of the mortgage process, you will probably have to sign away your rights to the money,

Make the application joint and wait to be told that you can't do it.