HSBC Mortgage.

Niklas33

Hi. 

I’m a first time buyer I was a day from exchanging contracts when i was placed on Furlough I have informed my broker who have passed it back to HSBC. 

I’m currently in a queue waiting for it to be reviewed by the underwriters. 

I’m putting down a 10% deposit. 

I am returning to work on the 2nd of December and have only been furloughed for 3 weeks. 

Anybody have any advice if they say no. 

Thanks. 

K_S

@Niklas33 Sory to hear about the roadblock but you're lucky that you found out before exchange! Given that the end of furlough is only a couple of weeks away, hopefully it shouldn't be a show stopper.

This is what it says on the HSBC guidance so you may be asked to provide a letter from employer and hopefully that'll be it.

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Furloughed employees returning to work

As furloughed employees start returning to work and are no longer reliant on the government Coronavirus Job Retention Scheme, the post furlough income can be used in a customer’s application.
A letter from the employer is required to confirm the employee’s income and return to work date which must be within the next three months.

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Unfortunately, 90% LTV loans are thin on the ground at the moment so if HSBC says no, you'll have to see what the broker says.

Niklas33

Thanks for your reply. 

I have a furlough letter from my employer but it says at the bottom. 

“You will be expected to return to work on the 2nd of December unless anything changes and should it change we will be in touch before hand” 

K_S

Niklas33 said:

Thanks for your reply. 

I have a furlough letter from my employer but it says at the bottom. 

“You will be expected to return to work on the 2nd of December unless anything changes and should it change we will be in touch before hand”

@Niklas33 Hopefully, if a letter is requested, that may be enough. I guess all you can do is hang on and wait until you hear back from the underwriters. If you are using a broker, what did they say?

Niklas33

They’ve told me my application doesn’t fit the criteria anymore, but it’s down to the underwriter. 

Nightmare! 

Thrugelmir

Underwriters like everyone else are waiting to see what the future holds. A week is a long time at the moment. 

GaryWindass

Hi there, I thought I would add my experience so far on the HSBC timeline: 
Background is: 

• Moving home which will require equity from sale and mortgage of c67% LTV
• Appointed London & Country as broker, very helpful thus far:

Timeline so far, ignoring the pre-amble with L&C which was in my control: 
19/11/2020 - Mortgage application submitted by L&C, late PM
23/11/2020 - Initial acceptance confirmed by L&C / Payslips sent onto lender by L&C 
24/11/2020 - Proof of equity sent to lender, via L&C portal. 
Await next step....

Niklas33

Just a quick update. 

HSBC have asked for a letter and they will honour the mortgage. 

The underwriter was very happy I was honest about Furlough. 

K_S

Niklas33 said:

Just a quick update. 

HSBC have asked for a letter and they will honour the mortgage. 

The underwriter was very happy I was honest about Furlough. 

Happy to hear that!