Advice Please! HSBC Mortgage Direct v Broker

tweeto

Hi me and my partner are first time buyers with a 10% deposit. We had an offer accepted on a house nearly 5 weeks ago and have been using a broker from that point to get us a mortgage.

My partner was furloughed in March but has since been brought back part time at 3 days per week with the other 2 days furloughed. Hence why we had to go with HSBC. 

Our broker has been trying every day since our offer was accepted over a month ago to get an application in with no joy. About a week ago we decided to apply directly to HSBC and just had our call with their advisor today. 

We were comfortably within our borrowing limit even with furlough, but the advisor today said they would only accept my partners part time income (3 days) even though she is on a permanent, full time contract. So won't take the 2 days of furlough into consideration.

So with her 3 days pay and my salary, what we need to borrow is 4.4 times our combined salary, taking us dangerously close to the 4.5xcombined salary rule of thumb. We're both very worried now that it's a bit too close.

I was wondering if there is any benefit to sticking with our mortgage broker when what we need to borrow is so close to our max limit? Do brokers offer any advantage in this case?...... Our HSBC advisor has requested an additional document from my partners employer stating her part time salary (don't know why they can't work it out for themselves) so our mortgage application hasn't actually been submitted yet and it's not too late to stick with our broker and hope he has some luck soon! 

I really don't know what to do, have you any recommendations? 

Thrugelmir

tweeto said:

 Our HSBC advisor has requested an additional document from my partners employer stating her part time salary (don't know why they can't work it out for themselves) 

Independent confirmation of the facts. At the moment they can only take your word for it. The employer could yet vary the terms. 

csgohan4

broker or not, they will request the same info, more streamlined with a good broker in theory

Bare in mind HSBC are one of the most strictest lenders out there

tweeto

Thrugelmir said:

tweeto said:

 Our HSBC advisor has requested an additional document from my partners employer stating her part time salary (don't know why they can't work it out for themselves) 

Independent confirmation of the facts. At the moment they can only take your word for it. The employer could yet vary the terms. 

We already had a letter from my partners employer stating her full time salary and that she was now working 3 days and stated the hours too. A very simple calculation could have given what she was paid for those 3 days. 

It is whaf it is I guess. I just don't like to pester her employer as she's under a great deal of stress at the moment. But we will get it regardless. 

tweeto

csgohan4 said:

more streamlined with a good broker in theory

More streamlined in what way? What advantages is there with being with a broker? Do they have more pull etc.? 

amnblog

Brokers know what they are doing, this prevents you making a mess of the situation by saying the wrong thing.

Process90

tweeto said:

Hi me and my partner are first time buyers with a 10% deposit. We had an offer accepted on a house nearly 5 weeks ago and have been using a broker from that point to get us a mortgage.

My partner was furloughed in March but has since been brought back part time at 3 days per week with the other 2 days furloughed. Hence why we had to go with HSBC. 

Our broker has been trying every day since our offer was accepted over a month ago to get an application in with no joy. About a week ago we decided to apply directly to HSBC and just had our call with their advisor today. 

We were comfortably within our borrowing limit even with furlough, but the advisor today said they would only accept my partners part time income (3 days) even though she is on a permanent, full time contract. So won't take the 2 days of furlough into consideration.

So with her 3 days pay and my salary, what we need to borrow is 4.4 times our combined salary, taking us dangerously close to the 4.5xcombined salary rule of thumb. We're both very worried now that it's a bit too close.

I was wondering if there is any benefit to sticking with our mortgage broker when what we need to borrow is so close to our max limit? Do brokers offer any advantage in this case?...... Our HSBC advisor has requested an additional document from my partners employer stating her part time salary (don't know why they can't work it out for themselves) so our mortgage application hasn't actually been submitted yet and it's not too late to stick with our broker and hope he has some luck soon! 

I really don't know what to do, have you any recommendations? 

I reckon you'll be OK if your outgoing are under control and you have a lot of disposable income.

My partner was furloughed and what we asked for was pushing our affordability calculations but because our credit reports were clean and we have a lot of disposable income, we didn't have any issues with an offer - apart from our property being downvalued by 35k...

Thrugelmir

tweeto said:

Thrugelmir said:

tweeto said:

 Our HSBC advisor has requested an additional document from my partners employer stating her part time salary (don't know why they can't work it out for themselves) 

Independent confirmation of the facts. At the moment they can only take your word for it. The employer could yet vary the terms. 

We already had a letter from my partners employer stating her full time salary and that she was now working 3 days and stated the hours too. A very simple calculation could have given what she was paid for those 3 days. 

It is whaf it is I guess. I just don't like to pester her employer as she's under a great deal of stress at the moment. But we will get it regardless. 

You providing the evidence isn't Independent. Manufacturing letters is very easy to do. 

Surely only take a minute to resend the virtually the same letter to HSBC once the request is received. 

tweeto

Thrugelmir said:

You providing the evidence isn't Independent. Manufacturing letters is very easy to do. 

Surely only take a minute to resend the virtually the same letter to HSBC once the request is received. 

They've asked us to get the letter from her employer and upload it. Agree that anyone could forge a letter, but it's what they've asked us to do.

tweeto

Process90 said:

I reckon you'll be OK if your outgoing are under control and you have a lot of disposable income.

My partner was furloughed and what we asked for was pushing our affordability calculations but because our credit reports were clean and we have a lot of disposable income, we didn't have any issues with an offer - apart from our property being downvalued by 35k...

I hope so, it's frustrating because my partner will likely be up to 4 days or back full time in about two weeks, which would put all well into the affordability bracket. But we can't wait that long as no doubt our vendor will start chasing soon.

If the application is in and my partner is brought back FT in two weeks time, is it a simple update for HSBC to make before the underwriter makes their decision?

What did you do when your property was downvalued? That sucks! 

Cscott139

I am a broker and I have given up trying to obtain a 10% mortgage with HSBC at the moment. They are offering the best deals at this level so I am telling customers to go direct but try to give guidance in terms of what they will/won't need to know about. I personally don't have the time to log in every day and try my luck.