HSBC Mortgage application

m0t

I have received my mortgage application through the post today and have been a bit confused by it.

In the outgoings section the Council Tax & Other commitments are don't match what was discussed on the phone, and is about £100 too low.

Can I just take it into a branch to get it amended or will I need to phone them back up and go through the whole process again?

Caladan

m0t,
Happens all the time - phone reps mis-hear or record the information afterwards and forget the finer details. It doesn't really matter anyway because regardless of what you put in the underwriters are going to base it on what goes out on your last 3 months bank statements.

Grab a pen, cross through the incorrect amounts and put the correct amounts in next to it. That will be fine. You can do the same if they got any contact details/address details etc. wrong.

Good luck with the application!

Kind regards,
Cal

_Andy_

Give them a ring to ask

m0t

Caladan wrote: »

m0t,
Happens all the time - phone reps mis-hear or record the information afterwards and forget the finer details. It doesn't really matter anyway because regardless of what you put in the underwriters are going to base it on what goes out on your last 3 months bank statements.

Grab a pen, cross through the incorrect amounts and put the correct amounts in next to it. That will be fine. You can do the same if they got any contact details/address details etc. wrong.

I work for HSBC and deal with these quite often.

Good luck with the application!

Kind regards,
Cal

Thats what I had done, and included workings on the extra information page to show how I had come to the figures.

Since you work for HSBC I'm going to pick your brains on this as well (hope thats ok). When I spoke to the lady on the phone she said I had to provide either original copies of bank statements or original copies of payslips, both of which I only receive electronically. If I just supply print outs will this cause an issue (she wasn't clear)?

She also sucked in her breath when I told her that some of the deposit was a gift from my partners aunt, so I am not feeling too hopeful...

Caladan

m0t wrote: »

Since you work for HSBC I'm going to pick your brains on this as well (hope thats ok). When I spoke to the lady on the phone she said I had to provide either original copies of bank statements or original copies of payslips, both of which I only receive electronically. If I just supply print outs will this cause an issue (she wasn't clear)?

She also sucked in her breath when I told her that some of the deposit was a gift from my partners aunt, so I am not feeling too hopeful...

Not a problem.

Printed on-line statements are acceptable, but they have to be signed off by an HSBC staff member to state they're happy that the statements are legitimate (you may need to go into a branch for this, I don't know how it works for on-line/phone applications). Printed payslips are also fine (and will be supported by the figures that show on your statement).

I wouldn't worry about the deposit being a gift from family, I deal with applications like that all the time.

Key questions here are -
Does the gift have to be repaid?
Will your aunt have any interest in the property?

If the answer is no to both it's really straightforward, if the answer to either is yes it'll be a bit more complicated.

For example, if your Aunt were to be on the deeds (i.e. own a share of the property) she'd need to take independent legal advice (at your/her cost) before the Mortgage would be approved. If the gift had to be repaid then it would be taken into account in the affordability assessment.

HSBC or the respective solicitors may also ask for evidence of the deposit to comply with Money Laundering Regulations (a term us bankers love to hide behind when we're not allowed to explain things in too much detail ), in which case your Aunt may have to provide a statement on the account it's coming from.

Hope it helps!

Kind regards,
Cal

m0t

Hopefully going to take it all into a branch today/monday, just waiting for a letter from the aunt co,firming that its a gift and she is not taking a financial interest in the property.

Once we send this off do you know how long it is likely to take for the survey to be arranged?

Caladan

The application will be scored and underwritten/approved subject to satisfactory survey, I'd expect this to take at least a week.

Typical turn-around time for an HSBC Mortgage to go from application to completion is around 6 weeks, although it depends on various third parties getting their act together as well.

jamesd

Also remember that you're not required to only submit what they ask for.

With my application I included a graph showing how my assets had increased over the previous five years and more details of the reasons for my usage of unsecured credit and intentions for it, which at the time was something around 75% of the mortgage advance being sought. An income multiple only a little over one, 75% LTV and sufficient savings and investments to pay off the mortgage advance and unsecured borrowing on day one meant I wasn't asked to pay off any of the unsecured credit. Don't expect that if applying at an income multiple of four to one and LTV of 85% though.

If it helps those dealing with your application to understand your circumstances it's potentially useful as a way of reducing their uncertainty about things and that's good when dealing with people who are being asked to make a risk-based lending decision.

While Caladan has described what is usual, sometimes things go wrong. If I recall correctly it took HSBC/FD five tries before they got me a mortgage contract to sign that correctly reflected the terms agreed. Do tell your vendor how things are going but don't exchange until you have a correct contract to sign. Then be prepared for the chance of an audit between exchange and completion that might ask for updated statements from you. No problem if you're prepared for it but sometimes people do unwise things that can cause the lending to be cancelled just days before the money is advanced.

Caladan

Hmm. You shouldn't be asked for new statements unless there's a suspicion something untoward is going on (like they suspect the deposit is coming from a personal loan for example), I've never actually had a case where I've had to ask a customer for new documents if the previous ones were all acceptable though.

If an application takes longer than 6 months (usually a re-mortgage or where the purchase keeps falling through) then a new app generally needs to be run which would require fresh statements etc.

jamesd

With the assorted back and forth exchanges it would have been between four and five months from initial acceptance to planned completion, but not as long as six. Saying that the purpose was "audit" as well as saying it was due to the time between application and completion is something that seemed unusual to me.

The unsecured borrowing was high compared to the mortgage advance but I don't recall any investigation into savings and investments from FD/HSBC. I had provided proof of deposit funds source to my solicitor who was of course acting on their behalf also, so that would have eliminated any concern that borrowing was required for the deposit: the balances shown were high enough to both clear the borrowing and pay the deposit.

Not a problem for me to comply and since I knew it could happen there was nothing untoward to see.

m0t

I took my documents into a branch on Monday afternoon and didn't have any problem with online statements.

Phoned this morning and the application is in a queue, so the nerves and excitement is building.