Hsbc declined

Deemoo

Hi,

Partner and I applied for a 90% ltv mortgage with HSBC which was approved in principle. We offered on a house and offer was accepted,we went back to HSBC to confirm application for 10 grand less than the AIP. We stupidly thought that it would be a walk in the park!

Briefly;

£24,000 from sale of our house (deposit)
Income £80,000 (combined)
Outgoings £700 (loans due to be settled sept and nov)
Need to borrow £202,500
Child care £98 p/w
Both have overdrafts on accounts (1joint 2 individual accounts)
No credit cards
Credit scores "good" and "fair" ?!?!
Store account with £290 (£1400 limit)
Outgoings bills and DD etc £600

One big issue we have is that currently I am on mat leave, although HSBC said as long as I have before mat leave paysilps they would take this into account, I am due to return to work in June.

I know it would be better to wait till Nov time when our loans are settled and I've been back to work for a few months so our income and outgoing are much better, but our offer has been accepted, we have accepted an offer on our house and there is quite a big chain now. Pressure!!!!!

We really are at a loss as to what to do, we understand it'll be tight for a few months but we are confident it'll be ok (we do waste a lot silly things like food/drink) belts can be tightened!

Sorry such along post, but any advice would be greatful. Be gentle!

GMS

HSBC are the pickiest of lenders so rejections from them are no great surprise.

Speak to a broker to see what options you have.

Will you be returning to work on the same terms as before?

ACG

HSbc tend to have the best rates, because of that they tend to pick and choose who they want.

As you now have one search on your file at 90%, its important you get a lender who will accept you without doing too many searches - i would speak to a broker, but i wouldnt expect it to be too difficult to find someone who will accept you.

Deemoo

Hi GMS

I was going to reduce my hours a bit, because my partner has just started an on call system worth extra £8,000, which more than covers my drop in hours. But this was only started last month so can't be used in mortgage calculations HSBC said it needed to have evidence for at least 3 months. So back full time for me prob (for now at least)

We went with HSBC becuase my partner has banked with them for 20 plus years, apparently loyalty doesn't count for anything though!

We are going to try a broker, because we dont want any more declined on our credit searches, hopefully there is something out there.

I hate the thought that people will miss out on their dream houses because of us.

Thanks

GMS

Reduce your borrowing by a couple of hundred quid so as to get a Loan to Value of 89.9% rather than 90%. It has been known to help credit scoring as mad as it sounds.

A broker should be able to help you. As your loans have 6 months to run there are lenders who will disregard them from an affordability point of view.

Good luck

property.advert

Overdrafts on all 3 accounts plus loans shows the OP cannot live on current income of £80k despite a lower mortgage now than the one they have applied for.

It is not rocket science to see that if their spending continued, their overdrafts would increase to the point at which they would fail to repay their mortgage.

The fact that the OP's partner has banked with HSBC for 20 years may well show 20 years of living in overdraft land !

ShALLaX

Loans and overdrafts on an income of £80k. Impressive.