Help! HSBC mortgage confusion

TrixA

Please can somebody help, I'm so confused by what's going on with our mortgage application and am really tearing my hair out.

We had an HSBC mortgage offer earlier in the year (March), but the purchase fell through prior to exchange (May). I called the bank to confirm next steps and they told me they would put the mortgage on hold until we confirmed the details of a new property. As our fixed interest rate expires in October, we simply needed to advise them of the details of a new property and complete before that date - we would not need to go through underwriting again. We subsequently received a letter confirming that the mortgage was on hold.

We have now found a new property, the agreed purchase price is £22k less than our previous mortgage offer. Coincidentally, we also this week received a letter from HSBC reminding us our mortgage was on hold and asking us to contact them if we wish to proceed.

Two days ago I called HSBC using the contact number at the bottom of this letter, explaining I had a mortgage offer on hold and needed to give them the details of the new property. After some to-ing and fro-ing and being put on hold I was told that my mortgage offer had expired and due to MMR changes I need to submit a completely new mortgage application. I was very disappointed to hear this as our initial application took weeks to process and we were hoping to move quickly with this new purchase as both parties are chain free. I asked why I had been given different advice back in May and was told apologies but the previous advice was not correct. I was advised to complete the new application via online banking but to call the main mortgage helpline to get something called a "contract ID" which would enable me to keep the interest rate I have already booked and paid a fee for. The guy I was talking to seemed very sure this was the right process and even checked it with a supervisor.

So, today I attempt to submit the new mortgage application through my HSBC online banking. I called the mortgage helpline to get the contract ID and was told no, they can't give those out, and the person I talked to two days ago had given me the wrong advice (common pattern emerging here). This new person then said she could see I had an approved mortgage already in the system so I shouldn't be speaking to her, but to the people who deal with existing applications (the ones I spoke to two days previously, who had told me to call her!).

I am now feeling extremely confused and not sure how to get advice about the right process to follow as every person I speak to at HSBC seems to tell me something different. I really don't want to submit a completely fresh application, simply to change the address of the property being purchased. None of our other circumstances have changed.

Really appreciate any advice or suggestions.

Funny_old_game

It's highly likely that a material change had happened ie purchase address, therefore its goes through new MMR rules.

This happened to lots of people from April onwards who had offers in place snd the sale fell through.

Unlikely to be another fresh app, just underwritten against tighter rules with up to date documentary evidence as standard in all cases post MMR.

Not what you want to hear but the most likely route.

TrixA

Thanks funny old game, I can understand if the application needs to be underwritten against new rules but this is not what I'm being told - I'm being told to put in a completely new application. That's the bit I'm confused about, particularly when the people who actually deal with new applications are telling me something different.

Funny_old_game

It's hard to answer as HSBC don't disclose much.

You'd have thought input the new address, rescore it and send in up to date income would suffice as that seems the logical.

You might jump the queue a bit as you have an application in so the above I hope for your sake is all that happens.

cwal

Could you ask to get an appointment at your local branch to sort it out face to face with someone? I had some issues a while ago with my hsbc mortgage approval and doing this really helped. I hope it gets sorted for you.

TrixA

cwal wrote: »

Could you ask to get an appointment at your local branch to sort it out face to face with someone? I had some issues a while ago with my hsbc mortgage approval and doing this really helped. I hope it gets sorted for you.

Thanks, that's a good tip, and we're probably going to try that.

Thrugelmir

TrixA wrote: »

I really don't want to submit a completely fresh application, simply to change the address of the property being purchased. None of our other circumstances have changed.

While your circumstances may not have changed. HSBC board policy may have. As the lending market constantly moves in reaction to wider economic events.

Mokka

We had the same problem- for some reason the number to call on the letter was wrong and people we were talking to couldn't see our details on their screens and got the wrong end of the stick. After being put through to 3 different people we finally managed to get through the right person and extended our mortgage offer with no problems. New MMR rules did not get into it.
I was beginning to panic as the first person i spoke to told me we need to reapply, which turned out not to be the case.

Explain very clearly that you have offer in place and be patient

TrixA

Mokka which lender were you with? Was it also HSBC? When was your original application?

Mokka

Original application in January, extension in July. Had to call a different number than on a letter and was eventually put through to the right person, who dealt with it very efficiently.

Our circumstances and property we are trying to buy haven't changed though, it might be different if you are buying a different property, as the bank would have to do another valuation, and that costs extra.

tigsly

My understanding is that HSBC are really tight - with their lending - so the new mortgage rules are unlikely to effect you much ..

I'd go into branch and talk to them..