Part exchange mortgage query urgent advice needed please

bubblesmoney

Still unresolved by HSBC. Received stock email several days ago to my complaint and no response since. Called again today and got another chap who seems to be looking into it and will call back later today. Hopefully he will be able to sort out this silly mistake by HSBC. Being forced to break fixed ISAs and bear loss because of HSBC underwriting team incompetence which is ignoring my £160,000 as part of deposit as its coming from part exchange sale of my present house to same builder i am buying the new home from. As a result of HSBC !!!! ups i am being forced onto higher LTV as per their calculations instead of the actual 44% LTV that i need as i have 56% deposit. Now being forced to have higher deposit as HSBC is ignoring the 160,000 proceeds of sale of my existing house part exchange to be considered as deposit for purchase of new house and just using additional cash deposit for LTV calculations unfortunately.

Earnings isnt an issue as have been told by other mortgage advisers that i dont need any cash deposit as my house sale proceeds itself are enough even if i dont want to use entire 160,000 as deposit. But other mortgage advisers cant do HSBC mortgages as i should get the HSBC lowest rate available for 60%LTV life time tracker. and i only need 44%LTV as am anyway putting extra cash deposit. Hopefully they can sort it today or will be forced to find another costlier alternative. If that happens will chase HSBC through regulators for their idiocy in their underwriting dept.

bubblesmoney

Last evening after almost the entire day repeatedly on the phone to HSBC and being on hold for various times while they were trying to understand issue and sort it out. They later agreed it was entirely their mistake and I was right about LTV calculations. They apologised for the mistake and are looking into how it happened. Someone in their underwriting dept had apparently classed £160,000 as builders incentive to me!!!! Instead of the amount being the proceeds of sale of my house to the builder part exchange for the new house i am buying from builder.

Problem sorted.

They have now booked an appointment to check documents etc as part of the application process. Hopefully no more unforeseen issues during the application process.

Does anyone have a clue how long the lead times are now for HSBC to process their mortgage during sale. Builders mortgage affects are trying to push me towards their Santander's tracker products at 2.2% saying they guarantee it will be done under 4 weeks and with free valuation and they say HSBC might take 6 to 8 weeks and delays might cause me to lose my deposit with builder!

I told them I prefer HSBC as 0.4% cheaper trackers. But now wary about lead times for HSBC processing times.

bubblesmoney

Got an appointment within a few days. Looks like HSBC needs 2 of the 90 minute appointments and they had booked me in for only 90 minutes. But thankfully got them to have both sessions done the same day and after a marathon 3h and 15 mins appointment, got mortgage approved on the spot by HSBC.

Managed to keep my older rate of 1.24% life time tracker for part of the mortgage and for the rest got 1.74% life time tracker.

Got 25% discount for home insurance and at a competitive price. Same for term life insurance.

Surveyor was appointed within a few hours of mortgage approval and have paid for and will be done tomorrow for the new build for the mortgage. Hopefully shouldnt have valuation issues as know few other people who have bought there in the last two years for much higher price than i purchased it for.

Also later HSBC complaints team got back to me and apologised for the hassles and gave me a small monetary compensation for my troubles. They have said will look into this further and improve training to avoid such issues in the future.

Almost done all paperwork for solicitors and hopefully will be sorted ASAP without any further hitches.

Happy overall that i stuck with HSBC inspite of issues, as they have been sorted and have a very competitive life time tracker mortgage with no penalties for over payment etc.

If i had instead accepted the hard sell of the builder to go with Santander I would have been paying 2.2% tracker instead for the guarantee of being completed within 4 weeks. HSBC might take a bit longer but makes more sense to me. Hopefully will be done quickly compared to Santander and this will be the cherry on the cake if that happens.

Thanks to everyone for their input.