HSBC Mortgage Offer Changed due to CML Disclosure

murray3

Hi All,

Looking for some advice.

Went through mortgage application with HSBC for new build property, when I did the application the Mortgage Advisor in branch had full knowledge of the incentives I had been offered from the builder.

This included extra for my part ex plus payment of the stamp duty with the total incentives being less than 4% of the Purchase price. The advisor told me that it was quite handy that I brought the reservation form in (that detailed this) and scanned this with rest of the application (wage slips etc..). He then told me that the HSBC appointed valuer will visit the property and site and will also check the incentives that have been offered before I would receive an offer.

Now as I was paying for the valuation I made sure I got a copy of the report and on the valuation report 21/10, the valuer lists the incentives as above. I understood that HSBC then reviewed this Valuation report, else why have it done? So after they had the valuation report, they then sent me a formal mortgage offer to myself on 22/10. I signed this offer and sent this back and checked a few weeks later it all been received, which they confirmed and were just waiting on draw down of the funds.

Fast forward to this week and HSBC solicitor (due to their securitisation process) asked my solicitor about the incentives, just when I was about to sign the missives. They said to my solicitor they would need to check that HSBC were happy with the incentives, so my solicitor advised I wait before signing the missives. I didn't think anything but a quick phone call to HSBC from their solicitors and they would confirm the above and I would sign the next day. I also called my in branch mortgage advisor and told him to hopefully expedite matters. Mortgage advisor said he would call the solicitors and make them aware of the situation.

However, as my solicitor had not heard back from HSBC solicitors, I decided to call HSBC to be told that they have written to me stating that they were revising the mortgage offer due to the disclosure. I couldn't take all this is in, so went into the branch to see the letter on their system (as still to receive). Basically the letter says they have dropped the offer by the amount incentive amount offered that I negotiated extra for my part ex on the CML Disclosure form. The branch called back to the mortgage centre who claimed that this was the first of them being aware of the incentives and if they known about these then the mortgage offer now, would have been the offer from the start. However, the branch system has a copy of the reservation form and the valuation report, which details the incentives on their system, as they were able to bring these up in my file yesterday.

According to my reading of their T&C's the only thing about changing or withdrawing an offer of a mortgage relates to information that I haven't provided. So what I don't get in all of this, is how the mortgage centre claim to have no knowledge of the incentives until this week, when their own valuation they had carried out lists the incentives mirroring the reservation form.

I'm usually quite calm and relaxed but the stress from this has been unbelievable as the builders are threatening to pull out at the other end due to HSBC mistake(s).

Any advice, appreciated?