FTB - HSBC mortgage stress

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North_London_Girl
North_London_Girl Posts: 14 Forumite
edited 14 October 2018 at 4:03PM in Mortgages & endowments
Hi there,

We're FTB and have made a full joint application through HSBC after obtaining AIP for a property just over £300K.

We have a 14% deposit, so falling into the 90% rates bracket. No outstanding debt, always paid credit card off in full every month. Combined salary of £94k.

I stupidly forgot until yesterday that a while ago we had a few late payments with Virgin Media due to a direct debit not being set up. 2 of these fall into the last 12 months (October and November 2017). There were 5 late payments in total with the first being in November 2016. Obviously, I am now worried sick and take full responsibility for my own stupidity and any resulting negative impact this may have.

Will this mean an automatic rejection by underwriters?

I have tried to access Experian report but as I gave a wrong address (we have moved 3 times in last 3 years) I now have to email to go through additional ID checks to access the full report to see if these are appearing, so there will be a delay in accessing it.

Equifax is only showing my Virgin Media account from 2015/16 which was all paid on time and settled - but no record of Virgin Media going forward. Do they still report to Equifax? Seems strange 2017/18 data isn't on there.

If we are rejected by HSBC, do we have a chance with other high street banks?

Thanks for any advice.

Comments

  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    When applying for a mortgage always look at your own credit files, all 3 of them. HSBC are one of the more stricter lenders out there. Hopefully you should be ok.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    Will this mean an automatic rejection by underwriters?

    No.

    The whole scenario is looked at with negative things working against you and positive things working for you.

    Only potential issue is that HSBC do like to cherry pick lower risk cases. So, if you were going to get rejected by anyone, it would likely be them.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • cjv
    cjv Posts: 513 Forumite
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    My Virgin Mobile account was only ever reported to Equifax, not Callcredit or Experian. Not sure if it is the same with their other services, but you might be ok.

    Check all 3 reports, good luck!
  • amnblog
    amnblog Posts: 12,443 Forumite
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    HSBC only use Experian.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • North_London_Girl
    North_London_Girl Posts: 14 Forumite
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    Thanks everyone for responses.

    The Virgin thing is weird, as I have used them continually since 2015 but only 2015 and 2016 show up via check my file report. Once I get the Experian report I’ll be able to double check.

    Will keep my fingers crossed. It’s been a truly awful yet much needed kick up the backside I think.
  • North_London_Girl
    North_London_Girl Posts: 14 Forumite
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    HSBC have now booked the valuation for tomorrow, is this a good sign?
  • somethingcorporate
    somethingcorporate Posts: 9,449 Forumite
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    North_London_Girl wrote: »
    HSBC have now booked the valuation for tomorrow, is this a good sign?


    No, almost certainly on an unconnected timeline.


    Our valuation was completed before we sent in the documentation/they did a full credit search.
    Thinking critically since 1996....
  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    North_London_Girl wrote: »
    HSBC have now booked the valuation for tomorrow, is this a good sign?

    No. They will book the valuation before it goes to underwriting.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • North_London_Girl
    North_London_Girl Posts: 14 Forumite
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    Just wanted to update this post to say that we have now received a mortgage offer from HSBC. Feeling absolutely relieved and thankful.
  • Happyland000
    Happyland000 Posts: 4 Newbie
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    North_London_Girl wrote: »
    Just wanted to update this post to say that we have now received a mortgage offer from HSBC. Feeling absolutely relieved and thankful.

    Congrats, do you mind me asking what was your timeline from application to approval?
    Thanks!
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