Should I scrap MA & go direct?

[Deleted User]

I think having a broker can really help in terms of getting your point across - as long as the broker conveys that point correctly!

Going direct is an option, but you're very much dependent on the adviser you see. If it's an adviser that's not very helpful then you'll be worse off as you'll have no way to appeal it - so if the adviser just says "no can do" that's the end of it (except complaints, maybe, but that'll take weeks)

If the adviser is prepared to do the leg work (e.g. the equivalent of your brokers 'appeal') - meaning they will speak to Underwriting etc. and work out what's gone on before and how they can support you to rectify it going forward, then 100% going direct is a good chance (probably better, as like James says, their brokers struggle to get their applications in at the moment).

It'll flag that you've had a previous application - but if your broker was going to be putting in a new application that would've happened anyway - in fact you want them to know you had a previous application.

In the current climate, if the broker is saying HSBC are your only option, I'd be tempted to go direct and explain everything to the adviser at the first appointment - maybe even email in an explanation to the adviser before the meeting (do you get their contact details etc. still?). Send the old account number, a summary of what happened, the mistakes that were made etc.

Is the business trading again yet? If you can evidence that, it would support that there was genuinely an error. If you can't, it might be harder to get overturned until they are.

Ultimately you need Underwriting to be happy with it - and with a previous decline/cancellation on file that gets slightly harder - but whether that's via the broker or whether you can get a HSBC direct adviser to talk to the Underwriters doesn't really matter. Essentially, assuming you get a 'good' direct adviser who will put the legwork in - it comes down to how likely the broker will be able to get that process started again soon for you vs. the certainty that you'll get it started on X date at X time if you book a direct appointment.

If you go direct, I assume you'll have to go through an advise process again (1 hour plus) - and obviously the broker won't get paid for the work he's done so far (unless you paid any non-refundable broker fees) - so that's more points to take into consideration (time of new advice meeting + moral/ethical issues of leaving the broker at this point) but I appreciate the broker appears to have caused the main issue from what you describe, so I don't think many people would criticise if you now gave up on that approach and went direct.

Edit - just to add:
If you go direct you'll almost certainly be credit checked again (and likely for the broker route) - but 1 more check shouldn't really make a difference. Searches aren't the big deal people make out. It's better not to have them - as they knock your score at the lender - but 2 searches shouldn't kick you out unless your credit profile is poor anyway.

As an example - I got a £3k overdraft (from a bank that uses Experian data) with 16 x searches and adverse showing on Experian! The adverse was bad enough, you'd think 16 searches would certainly kill it... but no!

haras_n0sirrah

HSBC dont use overtime unless you are NHS staff at the current time.
Being completely honest self employed applications are a nightmare at the moment. They want to see your income is back to pre covid levels. If you took the seiss payment then they are in some cases taking that x 4 as your annual income and ignoring the accounts. Others are taking 80% of your worst year in the last 3 years as your income if you have seiss and they really hate bbl loans. I haven't tried hsbc with a self employed case yet but if you are not yet able to show the self employed income is being earned again  the lenders will not use it so you need to show decent business bank statements activity to get a self employed case through at the moment 

Process90

As long as you have a decent credit history then you just need to prove that everything in order. If you can prove your income on your submitted application and that you’ve been trading with said income, consistently throughout Covid, then you shouldn’t have any problems. You’ll probably also get higher than x4 of income if all of this is in order. The trouble comes if you haven’t been trading, can’t do any of this, and have dodgy credit history.

We used a broker initially until they told us that they were having troubles submitting an application with HSBC - we’re 85% LTV. They told us to submit our application directly with HSBC because HSBC are limiting broker applications - that was a couple of weeks ago. We submitted without HSBC advice because HSBC told us that it takes 2-3 weeks to get an appointment with a HSBC adviser. 

jamesm5094

We have got a phone call appointment with HSBC advisor booked in for 6th July so will have to talk to them about it then. 

My partner hasn’t started back working yet as she is a nail technician and they haven’t got the all clear to start again. She is however though claiming maternity allowance at £604 a month since April and this is guaranteed income until January. And by them her business will well and truly back up and running. 

jamielutz1987

@jamesm5094 Good luck and I hope it works out. Though in your place I would moderate my expectations given that your partners hasn't traded recently.

[Deleted User]

jamesm5094 said:

We have got a phone call appointment with HSBC advisor booked in for 6th July so will have to talk to them about it then. 

My partner hasn’t started back working yet as she is a nail technician and they haven’t got the all clear to start again. She is however though claiming maternity allowance at £604 a month since April and this is guaranteed income until January. And by them her business will well and truly back up and running. 

I just tried a hairdresser through HSBC and they werent having it without 3 months bank statements showing income at pre-covid levels.   A nail technician with no return date wont be considered  to have any income at the moment.  They wont use maternity allowance as income either. 

Self employed criteria:

Self-employed Income

(Sole Trader, Partnerships, LLPs with less than 200 partners, Limited Companies)

Latest three months’ worth of business bank statements are required for all customers (online statements/screen shots will be acceptable). The latest date showing on the statements needs to be within a week of the application start date.

Dont mean to be the bearer of bad news but I doubt HSBC will be able to do anything.  To be honest I cant see anyone touching your partners income until she has a return to work date and has proveable income

jamesm5094

It’s just getting as everyone is ready and it’s just our mortgage holding things up. It’s a house we love and really do not want to lose. Hopefully when over next couple of things something happens with the mortgage brokers application.