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  • FIRST POST
    • timbo29
    • By timbo29 10th Mar 18, 9:51 AM
    • 43Posts
    • 10Thanks
    timbo29
    HSBC counter offer less than DIP
    • #1
    • 10th Mar 18, 9:51 AM
    HSBC counter offer less than DIP 10th Mar 18 at 9:51 AM
    Prior to putting my house on the market I got a Decision in principle from my current lender HSBC for 180,000. The affordability calculators indicated I could afford to borrow 169,000 (however this seams to change a little every time I use it)

    Following having a offer accepted on a property, I needed to borrow 160,000. I had a long process of sorting the mortgage out but eventually only got a counter offer of 134,000 due to affordability issues. The mortgage advisor has been great at HSBC, however I'm so peaved off with HSBC and why they were not more cautious at DIP stage!

    I got a DIP 6 month previously prior to renewing my current mortgage on a 2 year fix, which I was planning on porting.
    I'm had to get a mortgage somewhere else, and as HSBC don't accept 2nd charge, I have a repayment of 1000 to pay. I feel I have been sold a yarn by HSBC, and also they should have advise me to go on a tracker in the first place!

    I just want honest advise if there is any thing I can do to get out of paying the early repayment charge.
Page 1
    • John-K
    • By John-K 10th Mar 18, 11:23 AM
    • 654 Posts
    • 1,016 Thanks
    John-K
    • #2
    • 10th Mar 18, 11:23 AM
    • #2
    • 10th Mar 18, 11:23 AM
    No, you chose to walk away from the deal, so you have to pay the fees to which you agreed.
    • amnblog
    • By amnblog 10th Mar 18, 11:27 AM
    • 10,551 Posts
    • 4,172 Thanks
    amnblog
    • #3
    • 10th Mar 18, 11:27 AM
    • #3
    • 10th Mar 18, 11:27 AM
    When you took the fixed rate, did you tell HSBC you intended to move within the two years?
    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.
    • ACG
    • By ACG 10th Mar 18, 11:32 AM
    • 17,032 Posts
    • 8,921 Thanks
    ACG
    • #4
    • 10th Mar 18, 11:32 AM
    • #4
    • 10th Mar 18, 11:32 AM
    The only reasons the lending amount would change between DIP and offer with the lenders I deal with are:
    1) I entered something wrong on the DIP, that could be my fault or the customers fault for providing incorrect info.
    2) Something changed between DIP and app.
    3) The original DIP was based on a 5 year fixed rate and then a shorter fixed rate or variable product was chosen.
    4) Credit score at DIP stage was different to application - but that would mean a reduced LTV due to risk, rather than a reduced loan due to affordability.

    I do not deal with HSBC so do not know their process, but unless they admit they have made a mistake, I can not see you having much hope of getting out of the fees.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, 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.
    • Thrugelmir
    • By Thrugelmir 10th Mar 18, 11:56 AM
    • 58,925 Posts
    • 52,250 Thanks
    Thrugelmir
    • #5
    • 10th Mar 18, 11:56 AM
    • #5
    • 10th Mar 18, 11:56 AM
    I'm had to get a mortgage somewhere else, and as HSBC don't accept 2nd charge,
    Originally posted by timbo29
    No mainstream mortgage lender will. As leaves them totally exposed to the 1st charge. Totally different lending market which will be priced accordingly.

    A DIP is not a mortgage offer either. There's no guarantee until full application is made. As lenders change internal policies at any time.
    Last edited by Thrugelmir; 10-03-2018 at 11:59 AM.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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