Differences in AIP offers and using a broker

mobidavid

Hi,

First time buyer here so please be gentle!

I bank with both the Halifax (my primary account which my pay goes into) and HSBC (an advance account that I transfer the minimum per month into). I have lots of credit history with the Halifax (all good!), and very little with the HSBC (I have a credit card with them that I pay off each month but only been with them < 6 months). The AIP from the HSBC was about £170K and 'mortgage promise' from the Halifax was £280K both said I could do a 95% LTV if needed (which I assume means my credit check was okay with both??). I've been wondering if I should consult a broker to look at the wider market, but if the other lenders (like HSBC) know little of me is it worth it - would I just get a low AIP offer like I did from HSBC?

Thanks.

Mobi :think:

ACG

The amount they will lend is not based on their experience of you as a customer that much. It is just their affordability calculation. Some lenders will lend more than others and £100k difference is entirely possible.

mobidavid

Oh okay I'd assumed that past credit history with the Halifax might have been the reason With the HSBC I did the AIP online and made a mistake (I put my current rent down as a expense) I did it again with out the rent and the AIP didn't change - I thought that might have been the problem too. But guess it's just they have different affordability calculators then .

ACG

It can make a difference with some lenders, but I do not think think that will be the reason for Halifax offering more.You can play around with the lenders affordability calculators online to see what they will lend you without doing credit checks.

[Deleted User]

I have seen differences that have been as substantial as this but not with HSBC being the lower lender.
Unless you are going to be repaying a lot of debt in the process of the move then hsbc should be similar to Halifax.

I had a case recently with HSBC direct offering someone 140k and when I out it through I get 210k. Odd but I bet it happens quite a lot. I've certainly had cases go through with lenders who have refused the client through another broker.
Its all about attention to detail sometimes.

Go to the hsbc for intermediaries calculator and see if it gives rhe same result. It's a really simple calculator

mobidavid

So turns out I was just an idiot. Unlike the Halifax one (which I did in branch) I did the HSBC one online, and I misunderstood the mortgage term bit (I thought it meant how long I'd like the fixed term bit of the mortgage to be - because I kept reading about X years fixed term mortgages so I put in 5 lol!) I've changed it to 25 years this time and hey presto they're within 10k of each other (which the HSBC one being higher!). Sorry total newbie mistake, I feel like a right muppet