HSBC Mortgage Process

Simon986

Hi all,

We're first time buyers and had our offer accepted about five weeks ago. We then applied for a mortgage with HSBC via a broker. I'm now concerned at how long the mortgage process appears to be taking and don't think the broker is being particularly helpful or effective.

A few weeks back the broker led me to believe the mortgage was approved subject to valuation. This week she came back to me saying my partner had failed HSBC's ID checks - I've now provided the necessary additional ID. The broker has now suggested that our application still has to be approved.

Is anyone familiar with the HSBC process, if ID checks still haven't been completed does this mean we are still at the start of the procw? How long should I expect the process to take from now? Does valuation take long.

Any info is much appreciated, as I don't trust what my broker is telling me.

betmunch

My understanding is that currently only Countrywide and L&C can submit applications to HSBC, reviews hardly cover them in glory.

HSBC has a reputation for kicking an application around for ages then reducing the loan amount or rejecting entirely.

Hardly a great combination.

I would suggest you contact your broker on Monday morning first thing and ask for a definitive list of outstanding requirements and an update on the HSBC service time scales. Your broker is the only one who can give you a proper update.

Tell them you are not happy with what's happened so far and will be looking to change lender and broker before lodging a formal complaint if service isn't immediately improved.

Take control of the situation

j_yorks

Interesting - we are considering a mortgage with HSBC but some of the online reviews and comments about delays are a bit off-putting. Are they significantly worse than other mortgage providers? Is it better to go direct or via a broker?

Did you get things sorted yet OP?

Wilko1987

I'm just about to complete and have just been through the HSBC mortgage process. My advice, avoid! It took HSBC 6 weeks for them to assign my application to an underwriter, by which point my vendor was getting itchy feet about my ability to obtain the mortgage. I used L&C and they were pretty useless and knew nothing about HSBC, their processes or what documents they accepted.

8 weeks in they rejected our ID documents and said we had failed the ID checks. We then had to send in 3 sets of different documents as they were very picky about what they would accept and the broker had no clue what was needed. 2 weeks later and they finally approve the application subject to valuation, at which point they instruct Countrywide for a valuation (not the best of surveyors based on reviews!). The valuation went fine for me but based on other reviews of Countrywide Surveyors, it's a roulette wheel as to the service you receive.

Eventually got the mortgage offer this week after waiting 11 weeks. The broker could never get an update in the first 6 weeks as apparently they don't get a single point of contact until it gets to a underwriter so they can't get any information. The broker told me it was first sent over to India for vetting and that's why it takes so long but I'm not sure if that's true or not.

amnblog

11 weeks! Congratulations

questionss

We've been dealing with HSBC direct. Our application has been to the underwriter & has been accepted so far. We have a meeting this week to open a different acct & pay the thus reduced booking fee and book the valuation. We've been dealing with their in branch mortgage guy and he has gone above & beyond in terms of customer service. He has kept us in the loop by phone/email. Took a brief summary of figures and contacted the underwriters to ask if they'd consider us & what further info they'd like with full application etc... We def don't fit the usual boxes etc and are missing many of the vital components. Obviously nothing is guaranteed till we get the written offer after valuation but so far so good. It's taken about 4weeks so far but that has involved us needing Saturday appts and also Xmas period!

j_yorks

Interestingly L&C strongly advised us against HSBC so we've gone with the Woolwich instead - apparently loads of L&C customers have had problems with HSBC so our adviser said he can't recommend them to anyone at the moment.

questionss

Just to update - we had a meeting on Saturday, opened an account to get the reduced booking fee, booking fee had increased since we started process but they honoured the original fee. Valuation survey has been done since then and we now have the full offer in writing. We've been really pleased from start to finish, they were prepared to look at our figures when we didn't tick all the standard boxes

michelle09

We're not the whole way through the process but we've not had any issues with HSBC so far. We had the mortgage approved in branch using their one day service. The formal offer in writing has come within a week and the valuation company phoned us three times the same day to organise the survey.


The vendor's EA was shocked though. He told us that HSBC have some of the best rates but are very slow.

ShriY

We were repeatedly warned not to go anywhere near HSBC bank, especially by the mortgage advisors from the local estate agencies, we consulted 4 of them. We are glad that we didn't listen them. HSBC bank is not on their panels, except perhaps London and Country Mortgages, and therefore they lose out their commission and hence recommend against using HSBC bank.

We went to our local HSBC bank branch, provided the required documents, which we were informed about on a prior phone call. It took 2 days in total to apply and to get the full confirmation of the outcome, in contrast to minimum 6 weeks that we were told by the mortgage advisors.

We met Mr Thomas (Tom) Tamiollo, the Mortgage Manager, at our local branch. Tom was very precise at explaining different aspects of the mortgage process, setting out the right expectations, and informing us about the risk. He refrained, rightly so, from advising things which were outside the scope of mortgage discussion. Whole meeting lasted about 1.5 hours and we were given printed information on the interest rates, along with the recommendations based on our circumstances.

In the end we are glad that we did not take third party mortgage brokerage services and went directly to the HSBC bank, saved about £500 in the fees and tons of time.

ytfcmad

Make sure you are being recorded whenever you call HSBC and tell them you wish to make a formal complaint about any poor service that crops up along the way.
We just re-mortgaged, they were hopeless but i knew this would be the case as we have re-mortgaged with them 3 times.
I've made £1200 in cash via compensation cheque's and a very good case of Red wine because of my complaints, £400 alone during this re-mortgage.
This time round it took about 11 weeks but i wasn't too bothered. Funny thing is the complaints department are Red hot, call you promptly and have a letter and cheque out to you in no time once you except their offer.