HSBC Mortgages

johnzoro

If I'm going for a £40,000 mortgage and I''ve got a decision in principal/mortgage in principal where they have already done a credit check. Do they do another credit check when you do a full application or do they only do 1?

Also if I get a mortgage for £40,000 over 25 years is £60000 about right in terms of what i'd pay back?

mattbuk

Depends what interest rate you get.

Thrugelmir

Always assume that the lender will perform another credit check.

The amount you'll repay in total depends on the interest rate(s) that is levied over the term of the mortgage. Making overpayments, however small, in the early years can reduce the amount of interest you'll pay significantly.

johnzoro

oh that's a bit pants.

when i applied for the mortgage in principal my experian credit score was "good" but now i've changed it because it was missing some info it's gone down to "poor"

so i'm worried i won't get the mortgage

maybe i shouldn't have contacted experian and told them of my missing info....

johnzoro

also i should mention the house i'm looking at buying is on shared ownership

i don't know if that makes any difference?

betmunch

Your getting the mortgage from HSBC not Experian.

Worry about what HSBC think of your credit profile.

10pence

HSBC will do a further credit check as the DIP is just an administrative check (soft check). Credit scores are meaningless.

Won't make any difference if it's shared ownership for the credit checks, only thing it will affect is the affordability calculations - they will factor in you can afford it now and possible rent increases.

johnzoro

betmunch wrote: »

Your getting the mortgage from HSBC not Experian.

Worry about what HSBC think of your credit profile.

Yeah but don't they use experian to check whether i'm credit worthy?

betmunch

They will use the raw data from all 3 credit reference agencies to an extent.

They will not use an opinion or score generated by thr CRA, so all the poor, fair , good, numerical score generated by the CRA is irrelivant

johnzoro

is there a way to know what they can see

also does anyone know what factors they use to decide?

betmunch

Yes. Its all available to you when you have an account with the CRA you want to see the information for. Just expand all the details of each account.

massive waste of time though unless you know the computer algirithm the HSBC use to generate their decisions from the data your looking at.

Theres too many factors to list on what makes them decide, but the main one will be that all credit accounts have been well maintained and theres no arrears. If you have paid everything on time then you should be confident