Underwriter refused mortgage application (HSBC)

Poisonivey

Newbie here....so upset, we've just applied to buy our house through the "Right to buy" scheme....everything went well, the mortgage advisor (HSBC) said everything would go through ok, and saw no problems...so naturally we got very excited. After waiting 2 weeks I contacted the MA at HSBC to see what was going on....it was rejected! Why? Because even though I get paid weekly, and have wage slips to prove it, I get paid in cash, and because I put the money in the bank every month, or couple of months, or sometimes I don't, they couldn't see a correlation between what's on my wage slip and the money that I pay into the bank!......we had our hopes raised, now they've been dashed!.....our mortgage repayments would have been half of what we pay in rent, and we got a nice discount of 54% so they would have been lending us less than half of the value of the house, so theyd be on a winner IF the house was ever repossessed!..........now I'm left with a dilemma, do I apply elsewhere and would another credit search by another bank damage our credit rating? Or do I just let it go and try again in a few months time? Totally peed off

[Deleted User]

With that sort of pay situation, I'd suggest you need a decent broker so the application can be placed correctly.

csgohan4

ideally you would need a broker to match your circumstances to a lender. but you can see why the bank has rejected on the basis of salary not matching.


Btw asking about RTB on here you need a thick skin. Good luck

Poisonivey

"Btw asking about RTB on here you need a thick skin. Good luck". Why would that be?
Ok, thank you for that...a mortgage broker it is then....or find another job lol. I'm just new to all this "Buying a house" stuff and haven't really a clue where to begin x

Poisonivey

Deleted_User wrote: »

With that sort of pay situation, I'd suggest you need a decent broker so the application can be placed correctly.

Thank you, I'll look into this....would applying again so soon damage my credit history do you think?

Poisonivey

The reason I want to buy my home is because if anything ever happened to me and my husband, I'm worried about my children's future....atleast they would be able to carry on living here, hopefully mortgage free, hopefully debt free, as our life insurance would pay of the mortgage, leave them some extra cash to pay of other things until they get into a routine of "home ownership outlay costs" and it would be an investment for them. I'm not in it for financial gain, I've been here 23 years and have no plans to ever sell it, LOVE this house and invested a lot of money into it....the only thing the council do is service the boiler and sorted out some damp, everything else we do ourselves as the council only do the bare minimum to keep it habitable. Just been reading through other Right To Buy threads, and felt I needed to justify my reasons as to why I want to buy it, the last thing I want is to be jumped on x

csgohan4

the moral issue with RTB is your taking away social housing for the needy and those without enough income to afford a place of their own through private renting or buying.


social housing is for those who need it, not because of inheritance issues or because you stayed there for 23 years or for most people to make a quick buck.


Inheritance is not a right, rather better to earn your own way through life than expect hand outs from the tax payer via RTB

mrginge

Poisonivey wrote: »

The reason I want to buy my home is because if anything ever happened to me and my husband, I'm worried about my children's future....atleast they would be able to carry on living here, hopefully mortgage free, hopefully debt free, as our life insurance would pay of the mortgage, leave them some extra cash to pay of other things until they get into a routine of "home ownership outlay costs" and it would be an investment for them. I'm not in it for financial gain, I've been here 23 years and have no plans to ever sell it, LOVE this house and invested a lot of money into it....the only thing the council do is service the boiler and sorted out some damp, everything else we do ourselves as the council only do the bare minimum to keep it habitable. Just been reading through other Right To Buy threads, and felt I needed to justify my reasons as to why I want to buy it, the last thing I want is to be jumped on x

Posters only really tend to get jumped on when they want to buy their elderly relatives RTB. Because they can see the pound signs rather than considering what's best for that relative.

I don't think you come under that category.

Poisonivey

csgohan4 wrote: »

the moral issue with RTB is your taking away social housing for the needy and those without enough income to afford a place of their own through private renting or buying.


And my children would fall into this category if anything happened to me, hence the reason to buy it, it's them I worry about and I cannot allow that to happen to them x