First Direct/HSBC Mortgages

okborednow

Hi everyone,

My sister is looking to buy a property in the next couple of months. She's seen a broker and he's offered a reasonable deal but there are some really good ones with hsbc and first direct which don't deal with brokers. Does anyone have experience of applying to these companies (yes i know they're the same really!) and is it really as difficult to be accepted as i've heard?

The details are...purchase price 106000, she has 10% deposit, is on 20k a year and a spotless credit history but with no debts outstanding at present.

gld73

I'm currently going through the mortgage application process with HSBC - I've banked with them since I was a teenager and am now in my 40s, so assumed I'd sale through as they'd know I had a good credit history. It's not quite that easy! Even though I have a 25% deposit, and my salary will easily cover the mortgage repayments, they're still asking for additional things I didn't expect (last year's tax return for one thing - which meant I was up all night last night doing it!).

There's no reason for them to turn me down, so I assume it'll all be okay in the end - but I've had to produce more paperwork and evidence than for mortgages I've had on previous houses. There again, their interest rate is good, so I suppose they can afford to be picky!!

So no idea at all how your sister would get on - the phone application is worth starting though, as that should be able to flag up any obvious blockers in 1 phonecall.

kingstreet

okborednow wrote: »

Hi everyone,

My sister is looking to buy a property in the next couple of months. She's seen a broker and he's offered a reasonable deal but there are some really good ones with hsbc and first direct which don't deal with brokers. Does anyone have experience of applying to these companies (yes i know they're the same really!) and is it really as difficult to be accepted as i've heard?

The details are...purchase price 106000, she has 10% deposit, is on 20k a year and a spotless credit history but with no debts outstanding at present.

4.77x income is outside HSBC Group lending limits AFAIK.

Swoosh84

We just recently went through the HSBC mortgage application, all went very smoothly.

Done the mortgage application on the Thursday morning, received written confirmation of the mortgage offer on the Tuesday after. Very quick in my opinion.

As kingstreet mentions, 4.77 x salary is more than they are willing to offer. The mortgage adviser in branch did state that they were very 'conservative' and I may be able to receive a higher multiple than what they offered elsewhere.

We ended up with 4.3 x Salary from HSBC. She did comment that this was above average so I must have an excellent credit rating.

We were not bogged down with many request, just the usual paperwork which was all provided initially.

okborednow

Thanks everyone! She will need the 4.77% so maybe she should stick to the broker.

kingstreet

Other lenders will offer upto 5x gross annual income, so yes, her prospects will be better with an intermediary.