Mortgage application - broker or straight through bank?

Workingthroughitslowly

Hi
I'm about to apply for a mortgage. An initial chat with my bank (HSBC) suggested I could go through them and that "affordibility" looked fine. However I don't have a great credit history:

Several missed payments and one default - although don't know what that actually related too (account I'm not familiar with)

i have a good salary and s decent deposit but I'm worried getting turned down could have additional adverse effects on my credit rating.

Grateful for any thoughts?

amnblog

Your chances with a patchy history and HSBC are slim to say the least.


Place safe and get some proper advice.

jacobtheamish

HSBC are very tough on even the most lightest of black marks on credit files.

Your case is not straightforward, therefor engage a broker and provide a credit report so the correct lender is recommended

Workingthroughitslowly

Ok thanks - frustrating that HSBC would give the impression that it wouldn't be problematic when seems not to be the case.

kingstreet

The problem is, HSBC will keep you dangling while they decide to lend to you or not.

A broker will have the case placed quickly and offered probably before HSBC has got to the agreement in principle stage.

Malmo

The usual solid advice above OP - don't touch HSBC and engage an independent, whole of market broker (not one based in an Estate Agent).

I would get that default looked into though, as you mentioned you're not familiar with the account in question. Perhaps head over to the Credit File & Ratings board for advice.

Thrugelmir

Workingthroughitslowly wrote: »

Ok thanks - frustrating that HSBC would give the impression that it wouldn't be problematic when seems not to be the case.

Underwriters make the ultimate decisions depending upon lending policy at the time. Front line staff will have no access or knowledge of current policy.

amnblog

Thrugelmir wrote: »

Front line staff will have no access or knowledge of current policy.

This is often also the case with 'underwriters' - ask any broker.

Workingthroughitslowly

Thrugelmir wrote: »

Underwriters make the ultimate decisions depending upon lending policy at the time. Front line staff will have no access or knowledge of current policy.

That's helpful - and reassuring. If someone is actually looking at the specific circumstances rather than just following a process I'm fairly confident.

Workingthroughitslowly

Also as to my original question - do refusals get registered? Can being turned down create an additional problem?

I called two brokers but they don't have appointments u till next week whereas HSBC called me this morning to ask if I wanted them to set up the call with the mortgage team.

Malmo

Workingthroughitslowly wrote: »

Also as to my original question - do refusals get registered? Can being turned down create an additional problem?

I called two brokers but they don't have appointments u till next week whereas HSBC called me this morning to ask if I wanted them to set up the call with the mortgage team.

Refusals/declines aren't registered, only the event of an application taking place and not the outcome of the application. Lenders are only concerned if there are lots of searches recorded in a short time span as they may infer desperation and numerous declines.