Terrified of getting mortgage decline

amberlouiseb

Hello. New to this forum but decided to sign up after obsessively reading older posts on here for two weeks! I know that I'm not going to be able to get any real comfort or answers from posting here, but I figured it would still help me to vent and perhaps hear from others that are going through/have been through similar.

Last Thursday my partner and I applied for a 95% mortgage with HSBC. We have had an offer approved on a house that we absolutely love. I wish we could put down a bigger deposit, but we are working in central London and renting in London and buying in London, so it's been tough enough to save what we could! The property price is £335000. We have a £20k deposit and £6k savings for fees etc. We earn 70k joint income.

I'm not in my overdraft and have never used a credit card (broker has said this may not be a big problem, although obviously it does affect my credit score). I also bank with HSBC and have done for ten years, though again, not sure this helps at all!

My partner is what I'm worried about. We've previously has a decision in principal declined with Accord due to his credit. He has told me that since then he has resolved the issue, which was an unpaid phone bill from ages ago, but his credit score is still just average.

We did get a mortgage in principal from HSBC and our application has gone to the underwriters.

I trust our broker a lot because he sorted out my step dad and dad's mortgages! Even he is not 100% certain we'll get approved and I know we just have to wait and see. I'm just so nervous and can't stop feeling incredibly anxious/not sleeping over this.

If we do get declined, is there anything we can do? We are ftb.

mortgage1st

Hi,
I had a similar situation only mine was a bit more severe. I’ve had past credit issues but my partner has a really good credit history and an existing Halifax mortgage.
We wanted to buy together but we’re limited to specific lenders as I’ve had a CCJ and defaults but we found a broker and we got our mortgage agreement in principle and have last week submitted our full application and just waiting on t all happening really.

If you’re worried definitely get a broker, my experience of them has been mixed but based on what you’ve said I think you’ll be fine in a high street lender offering you something.

Which offer a free broker service and my sister used them and said they’re amazing so maybe give them a call as they’re whole or market and don’t charge!

Good luck!!

sparkey1

Well I wish you luck. HSBCs website says

"All applicants are credit scored via Experian as part of the full mortgage application. Applicants who have previously missed payments on their credit commitments will usually be declined. Individual cases may be considered under exceptional circumstances."

If you are declined, get hold of a credit report and see what information is on there. There may be other issues.

Lauralou79

I was under the impression HSBC were quite picky. I'd be a bit worried that your broker doesn't sound confident.

Do they specialise in adverse credit? They would be the better type if you have previous credit issues, they know which lenders would be likely to accept, I'd want the broker to place me with the lender best suited to my circumstances.

Im sure one of the brokers on here or the more informed will give you further advice but if it doesn't go your way be careful where you next apply.

ACG

It sounds like you/your broker are picking lenders based on rates.
Where there are issues, that is not the best line to take.

I am not saying you will get declined with HSBC, I have no first hand experience of them. But rather than looking at rates, it might be worth looking at lenders who are more flexible if they do decline you.

amberlouiseb

Thank you for your replies. Our broker told us HSBC were the best lenders for our situation, so I guess we'll just have to wait and see. if we do get declined, what's the next step? I know you should be careful to apply too much due to credit marks.

amberlouiseb

The problem is our broker is a family friend...

My credit is completely clean and affordability isn't an issue. It's just my boyfriend's unpaid phone bills from a couple of years ago tht worry me

YHM

Based on what you have said, HSBC definitely wouldn't be the best lender option for you.

As ACG detailed, it sounds more like that assessment is being made based on the pricing tables, as opposed to their actual lending criteria (which can be rather rigid!)

amberlouiseb

Could you recommend any lenders that are good with bad credit?