FTB 46% LTV - Mortgage Questions

mortgageFTB

Hi All,

Looking for a little bit of confirmation here. We're first time buyers and looking at the £330K mark for property in the south & pretty nervous too!

We obtained a positive DIP from HSBC last weekend and we're possibly getting close to putting in an offer on a house we've visited a couple of times. Are the application processes still pretty long winded (i.e. 4+ weeks?) I've heard that some are taking a long time.

I've read quite a few horror stories about people with HSBC and approved DIP's being reversed. I understand that the DIP essentially means "nothing" in terms of the actual mortgage approval, but I'm getting somewhat nervous - especially as HSBC have such good rates (0.9%).

We're looking at putting down 175K deposit, and taking a mortgage of £155K (based upon my earnings of 50K) - giving us a LTV of 46%.

We're both 26, we don't have any adverse credit history, couple of credit cards with a 0 balance and no other borrowing, no children - nor plans for any.

Honest question - should I really be worrying myself? Or are HSBC still pretty picky around the 50% LTV mark?

Thank you!

[Deleted User]

Lots of people share their mortgage stories over here, you might find something useful on HSBC:

https://forums.moneysavingexpert.com/discussion/4711931

[Deleted User]

mortgageFTB wrote: »

Thanks for the link.

I guess another question: When going through the application process with the advisor - do they take other assets into consideration? (I.e. further savings (outside of deposit), current investments etc?).

I would google 'affordability calculator' + bank name - see what boxes you are asked to fill in. They would probably count your interest from investments as part of your income, which would mean they could lend more. Nowadays banks want to know that you can afford the repayments (based on your income from all sources and essential outgoings such as bills, travel, food), both now and in the event of a future interest rate rise.

EDIT - I see you already got a DIP, so you have already started this process, and given the bank some information re your affordability. The actual application would be the same sort of thing, but with more evidence required (payslips, bank account statements etc), and with the valuation of the house/flat.

itGuyUK80

With any large bank there will be both happy and not so happy customers.. It is good to have idea what problems customer run in to, which allows you to foresee any problems you may face along the way.