First time mortgage advice.

QL3D

I've just put in an offer on a building for about 170k. Offer has not been confirmed accepted, they want me to go in Monday morning to prove my income and ability to get the money.

I have savings of about 130k. Meaning getting a mortgage of less than 30% of the building value. I am banking with HSBC and got a certificate of initial acceptance that will cover the required amount to borrow. Planning on borrowing 50k to cover furniture and other costs.

Got appointment to get a mortgage with HSBC in a weeks time. Their initial quote last time was 2.59% on 5 years variable rate tracker mortgage. With no fees and able to pay off as much as I want.

Expecting to be able to pay back at about 1.5k each month. This should allow me to pay off the money quicker than 5 years.

I am wondering if its easier to stick with HSBC or spend time to look around elsewhere for a cheaper deal ? As they will be only making about 2k money from me over the few years paying it off.

I've heard they prefer me to use their own Conveyancing Service (Countrywide). This might add a few hundred pounds on top. But again would this make getting the mortgage and securing the building easier and more convenient ?

Is there any advice I should be getting that I'm missing here ?

- Q!

FTB_Doll

You shouldn't have to go in n prove anything we didn't. Can I ask what estate agents your using

QL3D

FTB_Doll wrote: »

You shouldn't have to go in n prove anything we didn't. Can I ask what estate agents your using

:mad: Actually a few have asked for proof of Income, savings, ability to pay. We've gone in with bank statements and they have recorded them "for laundering reasons" and then destroyed the documents after offer falls through. The agency we're putting in a offer with is Connells.

chanz4

you don't need to prove anything, they want to sell a mortgage via their broker

Yorkie1

Connells are known for the dodgy hard sell. If you have an AIP from a proper broker to cover the amount you need, I would decline to show them anything more. Although not meant to, how can you trust such a hard sell agent not to disclose your maximum buying position to the 'EA' / seller side of the business in order to reject your offer and try to push you higher.

It is against the EA Code to make the forwarding of an offer to a seller conditional upon you seeing their broker - unless there are specific instructions from the seller to the contrary.

On the HSBC point, you are not obliged to use Countrywide Conveyancers. As long as your proposed solicitor is on the HSBC panel (usually a CQS member) then you will be fine.

savingbee

When I viewed a house with connells they kept on at me to try and use their mortgage advisor, even though i'd stated I had an AIP with a broker. then they tried phoning me every day for about a month!

When I put in the offer for the house I am buying, the EA asked me what broker I was with so they could make sure I already had an AIP.

Good luck!

ValHaller

QL3D wrote: »

I've just put in an offer on a building for about 170k. Offer has not been confirmed accepted, they want me to go in Monday morning to prove my income and ability to get the money.

I do not agree with proving means directly to the agent. You prove your means to your solicitor who then confirms to the agent. That way, you are not in the position of revealing to the agent how far you can be screwed.

If you must confirm to the agent, only ever do this for an ACCEPTED offer. Remember, you are showing the means to back up the offer, you are not doing it to let them work out how much to screw you for.

Mokka

Have you seen recent Dispatches on Channel 4 about dirty tricks EAs use to sell their own finance?
You can still get it on 4OD i think.
With no fees 2.59% rate is good IMHO.
All lenders now require that you use lawyers on their panel, but i've never heard of it being restricted to 1 company.

QL3D

Mokka wrote: »

All lenders now require that you use lawyers on their panel, but i've never heard of it being restricted to 1 company.

Thats right, but If i just allow HSBC to use their preferred lawyers to represent me as well, would that take a lot of hassle out and make it smoother ? (with maybe a bit more cost..)

-Q

Thrugelmir

QL3D wrote: »

Thats right, but If i just allow HSBC to use their preferred lawyers to represent me as well, would that take a lot of hassle out and make it smoother ? (with maybe a bit more cost..)

-Q

If you don't use a panel solicitor then you'll have to pay for the lenders solicitor as well. While you pay for the solicitor, a lot of the work undertaken is on behalf of the lender.

Yorkie1

QL3D wrote: »

Thats right, but If i just allow HSBC to use their preferred lawyers to represent me as well, would that take a lot of hassle out and make it smoother ? (with maybe a bit more cost..)

-Q

The starting point is for you to find a solicitor you think you'd like to instruct. Ask them if they are on the HSBC panel. This means that they represent you and HSBC in the same transaction and you won't have to pay any more legal fees.

If they aren't on the panel, then you can still use them but you will also have to pay an additional fee for HSBC's solicitors to represent HSBC. I think it's under £200. However, there are reports that this makes the process far slower and frustrating depending on which solicitor HSBC decides to use on its own behalf. If it is Countrywide then you've seen the reviews ...

As long as you select a solicitor on the panel and which is not Countrywide then you have a much greater chance that all will be fine.