Mortgage from HSBC declined

lornaliz123

Hi all, just after some advice. 
My husband and I are part exchanging our house with a new build, due to be finished in May/June this year. We've gone through the valuation and have a deal with the developer. We had a decision in principle with HSBC (my husband has a mortgage with them currently, I'm a first time buyer). We've applied for the mortgage today and been declined due to affordibility. My MIL is going to lend my husband money to pay off his personal loan, which will obviously reduce his monthly outgoings. Is it worth applying to HSBC again or another provider? If we don't get a mortgage soon then we'll lose the new build we've reserved. Thanks

Carl2510

How much Is the new property, and how much are they giving you for yours?

lornaliz123

The new property is £259k and they're giving us £147.5k for ours. 

Carl2510

hat are your current salaries, and deposit amount, do you have any equity from your home.

lornaliz123

Salaries are £28,700 and £20,800. We've got about £50k in deposit/equity from the flat

Carl2510

Must be a substantial loan then cause your salaries are decent.

lornaliz123

The loan is for about £5500

lornaliz123

My credit card is also at around £2900

csgohan4

replacing a loan with a loan and saying it is a gift will be fraud if your thinking about that.  Otherwise it will be treated as a loan, unless the MIl signs a declaration it is a gift and she will have no come back if she wants the money back

HSBC are one of the more stricter lenders out there. 


Get a broker who will try and find a more suitable lender

Is there anything else in your credit history like CCJ, defaults e.t.c?

[Deleted User]

HSBC are one of my most used lenders and its extremely rare for an application to decline on affordability.  The affordability calculator that brokers use is the exact same one that the underwriter uses.  
So I don't see how the broker would have got a pass on their AIP and then it fail on affordability at application stage, unless somethihg wasn't declared properly on keying the application. 

lornaliz123

We've no CCJs or defaults, nothing like that. I'm on mat leave just now but I've got my return to work letter from my employer so that's all good. Are there any other lenders anyone would recommend?