HSBC MIP 90% LTV - now jumped to 15% deposit required! FTB

missye100

Hi, i had a Mortgage in Priniciple with HSBC (my bank for 20+ years) with a 10% deposit. I just had my first call and they have said that because i have an appointment after 16th i will now require 15% deposit! Thats an extra £8k they expect me to magic up after using a Help to Buy ISA and saving for years.
My question is, can I hold them to the 10% deposit i got the mortgage in principle for?

Annoyingly i did have an appointment for 13th but had to move it to 18th as the first date was A level results day and thats the key day in my job at a University. 

MWT

Unfortunately there isn't anything you can hold them to on an AIP.

Probably not much chance of moving the appointment to an earlier date now but it is worth a try perhaps?

adrian84

Why don.t u use any broker that can submit your application asap? You can find fee free or small fee brokers, including on this forum.

haras_n0sirrah

We brokers are trying to get HSBC as well - it is taking about a week to get submitted but still apparently faster than trying to get an appointment direct. We have 2 hsbc spots available (as a team of 8 each of our brokers only take 1 hsbc 90% client at a time)
Other lenders are also doing 90% especially as a ftb so may be worth changing lender
Are they bringing in 85% accross the board? - we haven't been told this so slightly concerning if they are.

Thrugelmir

missye100 said:

My question is, can I hold them to the 10% deposit i got the mortgage in principle for?

No, a MIP is in no way binding on the lender to offer or accept you for the produict you enquired about. In the current economic climate lenders will be extremely fluid as to the business they are underwriting. With few lenders offering 10% deposit products goes without saying that that HSBC will have been inundated with applications recently. Time to back off and balance their mortgage books with other products. Money for any product is finite. 

dunstonh

My question is, can I hold them to the 10% deposit i got the mortgage in principle for?

Decisions in principle are not worth the paper they are written on.  They are effectively a statement saying that if you were to apply today and using current lending criteria we would lend you this amount.  90% of the time that is fine but when there is a financial crisis, lending criteria changes frequently.

[Deleted User]

did you ask them why the date was important?  We havent been given any indication that they are withdrawing from the 90% market

kmurray1003

missye100 said:

Hi, i had a Mortgage in Priniciple with HSBC (my bank for 20+ years) with a 10% deposit. I just had my first call and they have said that because i have an appointment after 16th i will now require 15% deposit! Thats an extra £8k they expect me to magic up after using a Help to Buy ISA and saving for years.
My question is, can I hold them to the 10% deposit i got the mortgage in principle for?

Annoyingly i did have an appointment for 13th but had to move it to 18th as the first date was A level results day and thats the key day in my job at a University. 

Hope they aren't going to remove 90% mortgages across the board after 16th August!......Did they indicate this?

haras_n0sirrah

I have spoken to my BDM - Seems this bit of news wasn't due to be released yet but after the 16th they will be only offering 90% via brokers. The direct chanel will be 85% as a maximum. If you want to get an HSBC 90% deal you will only be able to get it via a broker. If you know you are going to want an hsbc 90% deal speak to a broker sooner rather than later as we can only take 1 at a time (although rumour is they are going to make it easier for brokers to book the deals by diverting the direct funds to us)

AnxiousFTB

Wow really, how frustrating for you. HSBC must have been inundated over the last few months. I wonder if the housing market itself will become affected if buyers with 5% and 10% are struggling to get mortgages through. Since they announced the stamp duty changes there's at least a dozen houses a day local to me going on the market. I hope you get sorted. 

kmurray1003

haras_n0sirrah said:

I have spoken to my BDM - Seems this bit of news wasn't due to be released yet but after the 16th they will be only offering 90% via brokers. The direct chanel will be 85% as a maximum. If you want to get an HSBC 90% deal you will only be able to get it via a broker. If you know you are going to want an hsbc 90% deal speak to a broker sooner rather than later as we can only take 1 at a time (although rumour is they are going to make it easier for brokers to book the deals by diverting the direct funds to us)

Do you know when they'll be making it easier for brokers? We're using a broker at the moment and every morning for the past 3 weeks our broker has tried to submit our application with no joy he is saying it's like a lottery to get through the system as it keeps kicking him out where its a mixture of all the products gone so quick or he gets the spinning circle of death where the system kicks him out!..... Is this normal in your experience? I'm losing all hope at this stage