Is the mortgage company asking for more information good?

mildredalien

Hi all just looking for a bit of advice or maybe reassurance! My husband and I are applying for a mortgage with HSBC, through London and Country. It has been frustratingly slow so far:

31st March - application submitted
7th April - credit checks done and requested documents (payslips etc.) sent
21st April - HSBC query a direct debit and prior loan
29th April - HSBC ask for more documentation about the loan

Broker says they are happy with affordability, but there's been an issue with an incorrectly recorded loan. It was my husbands and paid off years ago as part of a debt management plan. No defaults within 6 years but the DMP lasted until about 5 years ago. Unfortunately a loan company randomly updated my husbands credit report with totally wrong information on 1st April! He has already provided some information via email about the actual loan, correct dates and that it is all settled.

HSBC are now asking for original paperwork confirming when the loan was settled through the DMP and from the loan company. This seems to be the last sticking point and we definitely can get this info to them.

Is it a good sign that they haven't rejected us already or could they still turn us down even if we prove that the credit report is wrong and the loan is settled?

Also any tips for hurrying them on much appreciated, they seem to take at least a week to do anything!!

Jamesjames

Though our lender is virgin money, they did request several more documents from us over several days, until they requested valuation two days ago.

What I would say is that it is a good sign as it means it is not outright rejection of your application and they are willing to lend, if they are satisfied with the documents submitted. Fingers crossed for you.

Newbiebuyer2016

Did they request more documents before the valuation?

Casa1862

Jamesjames wrote: »

Though our lender is virgin money, they did request several more documents from us over several days, until they requested valuation two days ago.

What I would say is that it is a good sign as it means it is not outright rejection of your application and they are willing to lend, if they are satisfied with the documents submitted. Fingers crossed for you.

That's surprising, I've applied with virgin (btl) and they instruct valuation straight away. Had homebuyers survey done Wednesday and been told should get results Tuesday. Survey done by Connells.

Did you go direct or broker?

Jamesjames

Newbiebuyer2016 wrote: »

Did they request more documents before the valuation?

Yes,they did. Valuation was not instructed until they were happy with the application and docs submitted.

Jamesjames

Casa1862 wrote: »

That's surprising, I've applied with virgin (btl) and they instruct valuation straight away. Had homebuyers survey done Wednesday and been told should get results Tuesday. Survey done by Connells.

Did you go direct or broker?

Yes, we went via a broker. Ours isn't a BTL. we are having a home buyers report as well. Connells is carrying this out next week Wednesday.

banks4u

That's really good, I heard HSBC is a hard lender to get a mortgage via and especially with bad debts in the past. That shows you can go to the High street if you had debts before

mildredalien

Thanks all, HSBC haven't done a valuation yet, I'm assuming they are getting affordability and willingness to lend sorted first and then they'll check out the actual amount through the valuation. Which I'm hoping will mean no more requests for info once the valuation happens!

That's assuming everything comes back ok once we send off this final documentation, fingers crossed.

marsman802

Jamesjames wrote: »

Yes, we went via a broker. Ours isn't a BTL. we are having a home buyers report as well. Connells is carrying this out next week Wednesday.

I did one the other week with Virgin. Took 8 workings days from application to homebuyers survey to final offer. Pretty good record I think. They instructed valuation after they checked the initial documents. They did ask for a couple of extra bits but still instructed valuation whilst I got those together.
Good service I felt