Need help please I am really worried about my mortgage offer!!!

ItsyBitsySpider

As discussed on this thread, while I have a mortgage offer issued by Abbey, I applied for a similar product with HSBC directly. The idea was to apply for a better product in longer term as I was not made aware of any such deals by my mortgage broker I already used.

After the initial underwriting stage HSBC has come back with a reject decision based on Adverse activity.

According to the mortgage manager, it is a level 2 reject so we have chances to appeal - even he could not find on our HSBC account.

We never had any loan in our life and all our bills and credit cards are set up on direct debit to be paid in full every month.


I am really worried how it will affect our current mortgage approval as I suspect this rejection may have adversely affected our credit score. I have read on this forum that lenders do make last minute checks before the completion.

My mortgage broker who I used for Abbey application, is not aware of this application and the outcome. I am really reluctant to go ahead with HSBC.

Can someone please suggest me what is the best course of action for me in this situation. I would highly appreciate any advice on this please.

Many thanks

~Beanie~

Have you checked your credit files to see what is on there?

ItsyBitsySpider

I haven't seen our credit reports so far. I will do that also. What worries me more is the impact of this rejection on the current mortgage offer.

Can someone kindly tell me could this rejection have an effect on the current offer. Should I let my mortgage advisor know how I have tried to mess this up.

Thrugelmir

ItsyBitsySpider wrote: »

Should I let my mortgage advisor know how I have tried to mess this up.

Depends whether you wish to proceed with the Abbey.

Did you formally accepted the Abbey offer?

ItsyBitsySpider

Thrugelmir wrote: »

Depends whether you wish to proceed with the Abbey.

Did you formally accepted the Abbey offer?

Thanks a lot for your reply. Yes, I did accept the Abbey offer.

I have just got my credit report and credit score through equifax. The credit score is 406 which is below uk average - because of 3 missed payments with BT in the past apparently. This is a surprise for me as I have always all my bills set up through direct debit and never had any issues.

Looks like HSBC will hold their decision against this credit history, so it seems better not to pursue the application with them.

What worries me is could Abbey cancel my mortgage approval when they do last minute credit checks before releasing the funds. If that happens could I lose all my deposit given at the exchange of contracts. I am living in a rented flat so can't afford to do exchange and completion on the same day. Can someone please suggest something - what should be the course of action for me.

Thanks

ethank

Dispute the BT information with the credit reference agency if you think it is wrong.

ExpertAdvice

Hi,

Sorry, I don't want to scare you but I've had a few experiences where Abbey has declined the cases even after issuing the mortgage offers after doing final credit checks or audit by their head office.

I hope everything goes well with you.

Best of luck!!!

Wh05apk

If Abbey have issued the offer, then unless anything has changed in the interim, you should be fine, Abbey have relaxed their policy on adverse credit, until recently they have been a complete no go lender unless absolutely squeaky, recently I have had several cases agreed (even fast tracked!) with several "minor" late payments, and even a late mortgage payment.

amnblog

You have tried to get a result by going behind your brokers back.

To maximise your chances of this situation not collapsing around you I would suggest you let your broker know what has happened.