First time buyer 10%

madwife260

First time posting on here.
Help/advice/reassurance needed.
Sorry very long post!!!!!
We are first time buyers, with a deposit of 10% with mortgage in principle for more than the amount  needed, put an offer on a house and was accepted 16th July. Vendor told us they hadn't found a house and not in a hurry. We needed to wait until the end of the month to get money together to get the last of the deposit and solicitors fees anyway, so we were happy about this. 
Go and see mortgage advisor, who is going on holiday, give him basic details, reassures us everything is good and arranged appointment for 1st aug when he is back to do application. We do this and aplication with all supporting documents are submitted. 
The application was with the bank of ireland. Told us to wait a week as there is a backlog and will let us know. In the meantime we have instructed solicitors and searches have been started. With a 3 week wait.
Contacted the broker last week for an update, no reply. But today 19.8.20 he gets in touch saying the product has been pulled and application process will have to start again. Hes confident again that we will get a mortgage, even with 10% deposit. Its just becoming harder and harder to get the products. 

During this time the vendor has found a place, no chain and has already got his mortgage in place and is wanting to move asap and putting pressure on us to hurry up. 

We are worried that the process of another application is going to take another long wait and vendor will pull out. 

The issue we have is half of my deposit is a gift and nationwide are refusing to have a gift deposit of more than 25% on 10% mortgages. Which leaves us with very few options. 
What are the chances of us getting a mortgage or should we cut our loses and just save? 
We both have full time jobs, havent been furlough, but we do have 2 cars on finance and a loan. But well within the affordabilty calculator.

Am I being too anxious, is the vendor being too keen! 
Help please!!!

[Deleted User]

If the application was in the product being pulled would make no difference.  Products are secured when application is submitted.   Why cant you proceed with bank of ireland?

zobo1993

We are FTB's with a MIP for 10%, with over 25% gifted to us and we are having to go through HSBC. However, we have spoken to two independent advisors who both advised us to go to HSBC direct as its taken them longer to put the application through, due to waiting times. 

madwife260

This is what the broker told me! I didnt know that. I dont know what to do now. He said he was going to email this morning with an update on new application for another lender but hasn't done so yet. 

madwife260

zobo1993 said:

We are FTB's with a MIP for 10%, with over 25% gifted to us and we are having to go through HSBC. However, we have spoken to two independent advisors who both advised us to go to HSBC direct as its taken them longer to put the application through, due to waiting times. 

Oh brilliant. Thanks for this. I think this may be the route that we are going to go through. Save the 499 fee i will be paying for the broker!!! 
Can i just ask, the hsbc is this with the 999 upfront fees? 

zobo1993

madwife260 said:

zobo1993 said:

We are FTB's with a MIP for 10%, with over 25% gifted to us and we are having to go through HSBC. However, we have spoken to two independent advisors who both advised us to go to HSBC direct as its taken them longer to put the application through, due to waiting times. 

Oh brilliant. Thanks for this. I think this may be the route that we are going to go through. Save the 499 fee i will be paying for the broker!!! 
Can i just ask, the hsbc is this with the 999 upfront fees? 

We only have the MIP for now. I called up HSBC and asked them all sorts of questions. They said get a MIP, and then once you have an offer accepted on a property, give them a call and they will set up a meeting, but there is a 4 week waiting list. If you have 20% or more deposit, you can apply online but if you have 15% or 10%, you will need a mortgage advice meeting where they will go through the products, the application etc. I assume it will be at a mortgage meeting that they will ask you whether you want the £999 product fees or not. However, my sister got a mortgage with Barclays in January and they actually added the £999 product fees to the term of her mortgage, so maybe they could do this?

HCIMbtw

Explain why their has been a delay to the agent/person you are buying a house from. they should be understanding as it will be quicker for them to resolve the issue with you than another party. They will want reassurance you are in the process of resolving the issue. 

Unless your financial position is particularly unusual sack off your broker. Progress the mortgage directly with the bank, and complete your submission without any advice from them (trying to arrange these meetings with them will slow it all down), the process isn't rocket science, just form filling and evidence providing, and you will seemingly save yourself a broker fee. 

With most major banks you are able to stick the product fee for the mortgage onto your mortgage. But its never in your best interest financially you essentially just take on board more debt from the bank, your monthly payments are higher and you will pay interest on that £999 on the duration of your mortgage. So if you can avoid it and just pay the fee, do it. 

This isn't an exact science (I have a spreadsheet to calculate the exact break points) but as a general steer for you if your mortgage is between £0-£100k ish.. look for the lowest mortgage rate without a product fee (or a very low product fee) and pay it. Above this it probably be better value for your to accept a mortgage with a product fee (up to £1,000) to secure a lower rate for the term. 

I wouldn't consider looking at a mortgages with a product fee of more than £1,000 unless I was looking at taking on debt >£300k ish 

NB. the figures referenced in the latter part of this comment are rough guestimations based on numbers I crunched a few years back on mortgages and fees at the time