Anyone know what "application cancelled" means in HSBC's mortgage system?

ACG

ollysavingmoney wrote: »

Been rejected on affordability grounds, which is odd, as the monthly payments on the new mortgage would be £75 less per month than we pay on the house we're selling. All along, they indicated we'd be accepted, knowing our full facts, but it got pulled at the underwriting stage.

Back to the drawing board...

When they assess affordability, they do it based on rates higher than the initial tie in period, typically around 6-8%.

Have you spoke to them about extending the term or seeing if a 5 year fixed rate would allow you to get it through (5 year fixed rates gives the lender the opportunity to stress test at that rate, although it is optional on their side, stretching the term reduces the payments).

ollysavingmoney

The most frustrating thing is that they knew a week ago, but took until now to tell us, which has lost us time in the middle of the conveyancing process.

Also, now it's been cancelled, if we offer to put down more of a deposit, or agree a longer term, it will be treated as a new application, which isn't great for one's credit file.

ollysavingmoney

UPDATE - more complications

Now applying to a different lender as a sole application, but been told the lender (Nationwide) doesn't work with our family solicitor as they are not on their panel. Great, so now we've got to pay the conveyancing fees all over again, and Nationwide may still come back with a no (despite having banked and saved with them for years and still do).

minimike2

It sounds like you are just applying to lenders based on price going from cheapest upwards? You need to know that you meet the lenders criteria before carrying on making multiple applications left right and centre.

AnotherJoe

ollysavingmoney wrote: »

.... and Nationwide may still come back with a no (despite having banked and saved with them for years and still do).

So its your belief that any lender you've banked and saved with for a certain period should automatically grant you a mortgage ??????

ollysavingmoney

It's the broker (L&C) who directed us to Nationwide...

SimpleLife

ollysavingmoney wrote: »

UPDATE - more complications

Now applying to a different lender as a sole application, but been told the lender (Nationwide) doesn't work with our family solicitor as they are not on their panel. Great, so now we've got to pay the conveyancing fees all over again, and Nationwide may still come back with a no (despite having banked and saved with them for years and still do).

See if they can be added to the panel, mine were.