Mortgage offer expired help!

Prc97

Reposting here  

Hi! 

(FTB completely new to this process so excuse my lack of knowledge/ any incorrect terminology haha!) 

Quick background: we had our offer accepted the end of Jan and our mortgage offer 2/2/22 by HSBC with an expiration on 31.08.22. The chain wasn't complete until beginning of August, which was not enough time for things to be ready before offer expired. We pestered our mortgage advisor to assist a new application as we were coming to an end, but he tried to get an extension which failed (only got a week which we was informed about the day before haha!) and then proceeded to get new rates on 6.09.22. He spoke to HSBC, who advised that we could put an amendment (?) in as they already have done the valuations etc. on the house and already have our information, so will basically just adjust the rates. Our advisor put this application in on the same day. 

 However, today HSBC informed him that they will not honour the renewal and we need to put in a whole new application, despite saying last week that they would! This is extremely frustrating as we have now wasted another week and it has been almost 2 weeks since our offer expired! I would have said go elsewhere, but HSBC have the best rates and our advisor is hopeful that they may fast track the application as they do already have our info etc. (they haven't actually said this though..) 

It's just our luck that everything is moving and is set to be complete by the end of the month! (all we are waiting on is top of chain's land registry which has been expedited)  However if this takes the 6 weeks that it can, it's going to delay everything further  We also currently have a monthly rolling contract with our landlords which we need to give notice by the 17.09.22 to end our contract for 17.10.22, however now we aren't sure if it is going to be done it time !! 


Has anyone else been in a similar situation? Have they found that reapplying with the same lender is much faster than the first time? Any advise is appreciated greatly!! 

Thanks 

london21

You have been a bit unlucky also the chain has not helped.

You will likely get approved again with HSBC but the rates you secured in Feb 2022 will be very different to the new Sep/Oct 2022 rates.

Prc97

london21 said:

You have been a bit unlucky also the chain has not helped.

You will likely get approved again with HSBC but the rates you secured in Feb 2022 will be very different to the new Sep/Oct 2022 rates.

Ah yes, we had accepted we would lose our rates when the chain was still not complete in July! It has gone up by almost £300 a month

Just hope that we will get the approval within a month !

london21

When the application is submitted, the rate is secured as next increase due 22/09.

Should be approved, the only reason they are making you do a new application is because the timeline and rate changes. 

As far as nothing material has changed, should be fine. 

K_S

Prc97 said:

Has anyone else been in a similar situation? Have they found that reapplying with the same lender is much faster than the first time? Any advise is appreciated greatly!! 

@prc97 When you put in a fresh application with the same property, the valuation should be done on an automated basis, so hopefully that should speed up the process a bit.

With respect to the underwriting, I'm not sure it'll be any faster simply because you had an offer issued 6 months ago. In any case, as a broker I'd put a note saying that this is an application being rekeyed because the offer has expired and giving the reference to the first application. That might reduce the chances of the underwriter raising new queries.

If completion was imminent, I'd also check with my BDM if there's any way to jump the queue (currently 11 working days for PAYE income) to get to an underwriter. Not a huge chance of this working but perhaps worth a try.