HSBC How Picky?

LeoTLion

We are in the process of offering on a house we like and are looking around at mortgages.

I usually go through a broker, but a quick glance at the best buys table show that HSBC come out significantly cheaper than anyone else for a 2 year fixed rate. As I understand it, HSBC don't offer their mortgages via brokers, or rather, they only offer via Countrywide.

From what I have read here is that HSBC are amongst the pickiest of lenders and my concern would be that we go direct and get a refusal, which would then have an adverse effect on the rates we could get elsewhere.

So my question is, just how bad are HSBC when it comes to accepting applications and is there any way we can get an indication about our chances without gong through the full mortgage application?

Both my wife and I have good credit histories, no late/missed payments etc and the amount we are asking for is toward the lower end of the amounts given out by the online 'how much can I borrow'guess-timators. We are both employed full time, permanent.

My wife is an advance current account customer with HSBC and I am with FD, would this increase our chances?

LTV would be a shade under 85% and repayment would be 24% of monthly take home.

Any advice gratefully received!

Cheers

stephenni1971

How picky are HSBC? Very...

Sauvignon_Blanc

Being an Advance account holder made no difference to us. When looking at affordability they took into account my contact lenses, children's swimming lessons, Sky TV etc (all things we would cancel if we had to to pay mortgage). We were offered half the amount we needed. Since then we have received an offer from Natwest for the full amount. So yes, very picky.

LeoTLion

Did you have to go through the whole application process to get that offer?

jhyt89

If you have doubts, I would avoid HSBC. Go with Nationwide or Halifax as they tend to have the best reviews. HSBC aren't doing great in the press and it's not a coincidence.

kingstreet

I would tip us and any other broker to get from initial enquiry to offer while a typical borrower is waiting for an appointment at HSBC.

As an example, we got a new enquiry on Sunday. Illustrations were produced and emailed the same day. The client requested further illustrations and an agreement in principle this morning and it was done today.

They now have only to reserve a property and we will notify them of our requirements, arrange to see them, get the application submitted and processed; a valuation arranged and offer issued.

If you are "vanilla" and sub 60%, rate will be king to you and your vendor can wait. Meanwhile, we're getting our clients in their new homes, but sadly they are paying 0.1% or 0.2% more for a couple of years.

LeoTLion

Yeah, I was coming round to that way of thinking.

I'll speak to my broker and see what deals he can get me, I am somewhat risk averse when applying for credit so I think I'd rather pay a few quid each month more than risk a potentially damaging knock back.

Sauvignon_Blanc

Just an appointment to apply for a DiP.