Self Employed First time buyer Mortgage with HSBC
First of all, I would like to thank everyone who has shared their experiences regarding their mortgage processes. It is helpful to see that others have faced similar problems in the past and have found solutions.
My husband and I are currently trying to purchase our first home. I have been self-employed since January 2019, while my husband has been a full-time employee at the same company since February 2021. We had an offer accepted for a property priced at £585,000.
We applied for a mortgage directly with HSBC without using a mortgage broker, providing a 25% deposit and aiming for a 75% loan-to-value ratio (LTV). Our mortgage deposit consists of personal savings and company dividends. We submitted my husband's payslips and my company's accounts for the past two years, which show a net profit of over £100,000.
After a three-hour call with HSBC's Mortgage Advisor (MA), we passed the affordability criteria and hard credit check. However, the system required an underwriter to review our case. We were then referred to the underwriting process, and the MA requested my personal and business bank statements from the last three months. I promptly submitted these statements to HSBC's system.
I am still feeling nervous about our case, despite my company's strong performance over the past two years. I did not have a contract for the first three months of 2023, but I secured a new client last month, which resulted in my first business payment for the year. I am curious about the underwriting process. Is there a possibility that they may determine my company is not performing well at the moment and decline our mortgage application? This option doesn't seem logical to me since the year has not yet come to an end. Alternatively, will they only consider the company accounts from the last two years? I would appreciate any thoughts or insights. Thank you
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