HSBC mortgage

Piiiinksocks

We’ve used L&C because last year they were brilliant with us, though the advisor we used wasn’t able to fit us in when I wanted so we’ve had a different one and I’m really cross. I thought our case was simple but perhaps it’s not.

We exchanged on our sale 20/09/19 and unexpectedly saw a house we loved on 21/09/19. Our offer was accepted on the following Tuesday, we spoke to the broker that evening and got an AIP - the following day she recommended HSBC. They delayed putting the application in because we needed the funds from completion (26/09/19) to pay off 3 x loans and 2 x credit cards. I did this over the weekend, but more delays (some rates had been changed so they had to prioritise some other applications...), meant our application went in 2/10/19.

We both started new jobs in July - similar salaries, I have a probation period but hubby doesn’t. HSBC requested letters from our employers stating these things and p60s from our previous jobs on 10/10/19. Broker submitted these 15/10/19.

They’ve then come back yesterday and said they want proof our loans/CC have been repaid. Approx £6k ratesetter, £14k tesco loan and x2 Virgin CC of around £10k total we had statements to prove. Sainsburys loan of about £14k they’ve sent no documentation, and from experience take an age to send ANYTHING. They’ve had copies of bank statements showing the repayments but our credit files haven’t updated to reflect this yet.

We have a joint basic salary of £63k, and are looking at a 95% mortgage on a £250k house. Our credit history is good - we’ve never been late or missed a payment, and whilst a few of the loans were taken out 12-18 m ago, one of them is about 3 years old. We’ve got 2 children with childcare of approx £800/m.

The broker is horrific at answering my questions or responding to me in general, but I’m too far gone to change now. Am I going to have to cross everything and hope the underwriter is in a very good mood or should this be ok? The broker said she thought we could borrow up to £260k so we’re below this. How much longer?!

haras_nosirrah

Unfortunately they have put you with a lender who will count credit commitments against you unless you can prove they have been cleared prior to application.

There are many many lenders who don't have this requirement.

You will need to provide what hsbc are requesting or will need to change lender if you can't.

Hsbc were the wrong choice here if you needed speed. They can be great but they are not known for being good with probation periods and debt clearance so may not have been the best choice for you. They do have some cracking rates at 95% and can be quick - used them myself for a client on thur and her mortgage was agreed within 3 hours. Other lenders don't care about probation and you can just tick a box confirming you would pay the loans by completion.

As for London and country. Unfortunately with the conveyor belt advising companies lack or communication and speed is standard. They have too many clients to be able to provide a personalised service. Hsbc are cheapest for 95% at the moment and they will lend you enough - that would have been all that would have mattered however as you have seen there is more to choosing the right lender than that. Small firm of brokers would be able to spend time going through all options to look at more than what the sourcing system says is the cheapest rate and gone hsbc is x amount but these are the hoops you will need to jump through in your circumstances and it will likely take a while or lender y will do this really quickly and would expect an agreement subject to valuation within 24 hours but will cost £20 a month more. What is more important to you? To do that but they would likely have a fee between 300 and 500 to enable them to do give a more personalised service as we limit the number of cases we take on to enable us to be there to handhold. Your broker may be juggling 60 applications at the same time and as you have seen if something else is a higher priority you will be bumped down the list (5 days to submit at the start)

There is a lender springs to mind who could probably have this agreed subject to valuation within the day. I just got a full offer for someone from this website within 48 hours of submitting the application. Looking at sourcing on the numbers you have put the monthly payment would be about £20 more than hsbc. (I think hsbc will want a letter from the last lender so it sticking with it then get onto that)

[Deleted User]

Unless you are sticking with them as you have acurrent mortgage with ERC then I agree that this isnt the type of case HSBC should be doing. I dont doubt it will go through but there are other lenders who will get this done with no real questions.

Other lenders are going to maybe be £1 or £2 a month more but the lack of hassle would be worth it.

With where you are now you either make a choice to stick with L&C and HSBC. Im sure it will be fine but HSBC either have extremely good (offer subject to val within 48 hours of case) or can get themselves tied in knots trying to approve a case that shouldn't have been sent to them in the first place

Sounds like a very simple case of broker picking the best rate without knowing the lenders process. There is no point even submitting this case unless you already have the proof of repayment on file as its a 100% chance they will be asked for. The more times you are asked for documents after application is submitted it becomes clearer that the broker didnt know what was going to happen

csgohan4

You get what you pay for, L+C are fine for simple cases and anything more it's a stab in the dark.

Not something you want to put your largest purchase you will ever make on something free, especially on one of the most strictest lenders around

OP I wish you luck.

Piiiinksocks

I’ve realised my mistake with L&C and this really will be the last time I use them. It seems to take us a bad experience to realise the error of our ways. We had a terrible solicitor last year that cost us a house sale so we’ve switched that up this year and it’s more than paid for itself! I’ve been recommended a local broker since who I will contact if this doesn’t go through.

So basically, I WILL need the proof from Sainsbury’s, copy of a bank statement showing the payment isn’t enough? Am I likely to get an offer quickly or are we talking a few weeks? I’m annoyed because I feel like L&C have done what I could have done myself - I’ve no issue in researching the best rates, I need help on the less obvious bits like who will accept us (and I stressed to the broker at application stage I wanted someone that would offer us quick). A few £ extra per month wouldn’t have put me off.

haras_nosirrah

This is where an experienced broker is worth having as we know what the lenders need and pre empt it to avoid the going back and forth.

We wouldn't submit without having the letters confirming the debt has been repaid so if that was not forthcoming would have probably advised another lender if you were under time pressure and explained why.

Get on the phone to Sainsbury and ask if they can send you an letter confirming that your debt was cleared as of x date and can email the letter to you as an attachment
That is the quickest way if you can't print off something showing nil balance.

Something I get frustrated about is there is a huge difference between a proper broker and a conveyor belt broker firm. L&c, habito, trussle etc are basically compare the market who also fill in the paper work. They match you to the cheapest lender that will lend you enough which is fine as long as there is nothing in any way complicated about your case so cheapest rate and borrowing sum is the sole consideration. When your situation is more complicated and criteria comes into play the brokers working there are just not experienced enough as they are usually new to the industry and due to the case numbers they deal with they just can't spend the time researching to make sure they get it right first time.

Hsbc will probably do it but get that letter as they are not a lender who will take a view on something. If they want the letter they want the letter.

Piiiinksocks

Arggghhh. I’ve spoken to Sainsburys. Due to GDPR the information is all held on an external system and they cannot send emails. They’re sending me a letter which will take 3-5 working days.

I’m now really torn. Do I just tell L&C to withdraw my application and go elsewhere? Do I hold on and hope it comes through in time? The solicitors may not get everything through by 10th November anyway for exchange, so this could become a non-issue. I’m so out of control with this purchase situation and it’s driving me nuts. Piece of mind in this situation would have been worth the extra cost had I realised but arggghhh. We clearly got an exception with the advisor we used last year at L&C, she was very aware of the better lenders for the different situations!

zesh90x

I personally wasted a lot of time with a not so competent broker myself, and then changed broker and things fell into place like magic.

If I was you I'd scrap it, change broker and get it all wrapped up quickly, if anything you'll have a large amount of information you require ready to go now.

P. S I picked a broker from the forum here who I can't recommend heavily enough.

Hope it all works out for you, fyi I am not a professional, just a consumer who's been through the mortgage situation....

nyermen

One observation - when going for a 95% mortgage, I would expect more lenders to "count all credit commitments against you" i'm afraid. So no guarantee that switching from HSBC will solve that issue (although please shout me down if others have better knowledge).

haras_nosirrah

Lenders have the same criteria at 95% as they do at 65%

Some lenders will just want you to tick a box to confirm debt is being repaid and will make it a condition of your mortgage offer.

Some will want a declaration signed and to see evidence of where the money is coming from (e.g. if from sale of property will want to know what the costs of moving are and will want a break down to evidence there is enough to clear debt and move)

Some will count debt as staying unless it has been cleared prior to application and you have proof it has been cleared. Hsbc is firmly in this camp.

Piiiinksocks

I really do appreciate everyone that’s taken the time out to comment on this. You owe me nothing and it’s really helped.

I completely understand about credit counting against us, we have repaid all (except, I’ve remembered, £1k of interest free sofa credit because it’s interest free but we declared this), and I can (and have) proved all of it except the one loan - we sent in a bank statement showing this repayment but it’s obviously not lifted from our credit report as yet. I’m so frustrated we aren’t in an entirely instant world where all information flows through without my input!!!!