Mortgage acceptance - help please!

theeasylife

Please can anybody offer advice.

I have had an offer on a house accepted and are going for our formal interview/application with hsbc next week. I have read a few posts from people staying how stringent hsbc were and wondered if anybody in similar circumstance or who has professional knowledge could offer opinion. Here are me and my wives stats.

Income - combined £80,000 both public sector
Debt - nil
No dependants
Ltv of 75% on a £170,000 property
2 credit cards (0 balance) between us
Both current accounts in credit to a few thousand each.

THE PROBLEM (and I know it is entirely my fault!) payday loan x2 taken and repayed about a year ago.

Will this last point totally wipe my chances with hsbc despite having a mortgage in principle of significantly higher than required. I bank with them so would they already know this at the MiP stage? Or should I try somebody more open to my history.

Thanks in advance.

theeasylife

Any advice at all would be appreciated!

panzerfaust33

At just over 2x income and 25% deposit I don't think you will have a problem. With the new rules if your accounts have been healthy for the time period they check you should be fine.

Good luck

theeasylife

Thanks Panzer, appreciate it. Do you think it's best not to mention them at all unless asked specifically about them or just come out with it and hope they can see past the (colossal) mistake?

FireWyrm

Well, dont go in waving a flag about it, but dont hide it either. They'll find them on a credit check. Frankly, it doesnt sound like it would be a problem for all banks like Lloyds have pretty much declared that they wont lend to ex-PDL customers. Your stats sound just fine, but who knows for sure with the new rules. If I were you, I would have all my monthly accounts itemised and ready to go so you know exactly what to say when asked for information about specific spending categories. If you do this, it makes you sound a lot more in control. Yes, you had a little blip a few years ago, no, you have been good ever since, of course you know exactly how much you spend a month on food, fuel, gas, electric etc.

amnblog

I would be surprised to hear HSBC take you with a payday loan on file - keep us informed.

theeasylife

Thanks for the opinion, I shall keep you advised of my progress with hsbc. If not could you recommend a lender who might be willing to overlook a payday loan from a year ago?

GMS

Why did you take a payday loan?

Many lenders would be ok with it but using them tends to indicate problems. The reason behind it will be crucial.

theeasylife

It was because I had used one a long time ago so everything was set up and was in need of extra cash for a month last year, I repaid it and used it again the following month thinking nothing more of it. Then we decided this year we wanted to buy, I cleared my credit card a few months back and my credit rating is excellent on experian. Only got worried after reading posts about pdl on here.

theeasylife

I had my mortgage interview last week where they approved the offer in the 'store' but said they still have to get it reviewed by the underwriter. Does anybody know if the bank seemed happy is it likely the underwriters will be too considering the above scenario? Thanks.

theeasylife

Hi, as I was asked to keep people informed of my outcome HSBC has informed me that the underwriters have approved the mortgage, 5year fixed. I was quite worried before the application but just goes to show there is light at the end of the tunnel for those that have been 'naughty' with payday loans in the past. Good luck everybody else!