MORTGAGE OFFER MADE BY HSBC ATLAST!

FTB_crossed

HSBS have just offered us £353k for 85% LTV although we applied for £369k as mortgage amount for a property worth £435k(Property valued at £438k). We have a deposit of 15% ready and they agreed on full application that they would offer the full amount although according to our income, we would have gotten £401k but keeping in mind min deposit of 15%, they would not go before 85% of money(£369k)

I am baffled as to where to go next. To accept the offer or reject it?

If I was to accept it, then I need to bring in £16k over the next 2 weeks when solicitor demands as a deposit which is next to impossible.

Other way is to go with another lender but not sure as HSBC have done 2 hard searches and 1 hard search was done by NatWest who then changed their LTI last minute after DIP.

Third lender in a span of 1 month would stir up confusion for lending team or not?

Please guide me what to do..

Can I possibly speak to underwriting team and find out where it went wrong or what caused them to offer below asking amount. Will they be willing to amend the offer?

I went direct with HSBC and my mortgage advisor has said that this is the best they could do and he has no say over it and can't help further.

Any help would be appreciated as we are pushed for there time. Vendor and Estate Agents are calling every day to find out the status.

k3lvc

The maths don't add up - either they've offered an 80% mortgage (not 85%) or they've downvalued the property and offered 85% on £415k

Without asking them you won't know which but if they've downvalued then you need to consider reducing the offer accordingly or finding the extra

[Deleted User]

FTB_crossed said:

Third lender in a span of 1 month would stir up confusion for lending team or not?

No.  Lenders don't get confused by people looking for mortgages having credit searches. It's normal.

It sounds like you're applying direct when you could really use the services of a broker.

Thrugelmir

NatWest also reduced their LTI. Why?  Two lenders same issue. 

FTB_crossed

We applied direct and at point of DIP and full application, we agreed to go for 85% LTV but for some odd reason this figure of £353,856 has come up as offered. Valuation was satisfactory as it was more than the purchase price by £3k. 

Purchase Price: £435,000
Max Lending Amount: Above £400,000 considering £78,845 combined average income for past 2 years on self employed basis
Deposit: 15% of £435,000 = £65,250 leaves £369,750 to mortgage as agreed at every stage
Offer: £353,856 - No idea where did this figure come from
LTI of 4.48 may be but nothing has been put forward as the reason for it being lower than initially agreed.

Any idea if this can change by speaking to the underwriters at all. Or may be by finding out what has caused it to go lower than asking price. Could this be in error ?

I am keen to go to another lender who is HALIFAX, who already have this agreed by underwriters but 

katie91_2

Agree on using a broker, we’ve just had our offer through Habito and they were great.

[Deleted User]

Hi -
I'm a little confused on this because I didn't think there were any lenders lending 5+x salary / self employment? I think the 4.48 is very good for the current climate, especially on s/e. Are you sure you could get over £400k?

FTB_crossed

Yes, it was agreed on DIP and full application stage. It was also put forward to 2 other lenders and came back with maximum lending amount of over £400k & £394k respectively. They should at least make sense of the offer amount figure which should correlate to something or the other. Either they have reduced LTI amount or there is an error somewhere. Worth mentioning that the MA at HSBC was not up to the standards that we had thought of. He ended up creating 2 active applications and eventually cancelled one then done 2 hard credit searches and told us that he manually entered the figures somehow onto the application after it got corrupted.
Unbelievable as now it is left us with almost 3 weeks behind and rates are constantly going up and rules getting sticker.

I hope it gets sorted for us.

[Deleted User]

Have a look at this article. It states 4.49 multiples in your situation so pretty much where your figures are? https://www.trinityfinancialgroup.co.uk/article/hsbc-capping-maximum-mortgage-income-multiples-at-5-times-single-or-joint-salaries-

FTB_crossed

Thanks for the article but this should have been picked up at earlier stage if there was such issue. Although in this article, it says:
From Monday 8th June, where borrowers have more than a 15% deposit, the maximum income multiple will be 4.49 x income for those earning less than £30,000 and 4.75 times income if you earn over £30,000. For those learning over £100,000, the maximum mortgage will be capped at a five-times salary.

In my case, we both earn above £30k so they rightly applied 4.75 multiple and offered max £374,513 but considering 85% LTV reduced to £369,750 but eventually gone down to £353,856.

I've left a message for concerned underwriter to call me to discuss, let's see what it entails.

Thrugelmir

When did you apply for your mortgage? Events have moved very fast since the 8th June. Underwriting criteria can change overnight. Lenders have been reducing income multipliers under regulatory guidance. Hence why NatWest likewise changed their stance.