Congratualtions on your new credit card and savings account. I have some ISA's I have been trying to shift for a while and my mate also wants to get rid of some life assuracne thats been hanging around the shelves for a few weeks.....interested?

You have been well and truly sold to and i would suggest that after you have breathed a sigh of relief that your mortgage has been accepted that you put in a letter of complaint about the way these produycts have been sold under the guise of helping with your mortgage application.....they will not!

From what you are saying everything looks pretty good for acceptance. if you have gained a pass on AIP and your credit is in good shape and you have little in the way of commitments and your income is exactly what you declared in the AIP then you should not have anything to worry about.

Being on the electoral role is not as important as it used to be. It does still earn you brownie points with the lenders. If you have any kind of credit profile nowadays it lists the address at where you had it. Lenders also have access to tax records, postal address records, BT records as well as electoral roll and general credit profile records. They know where you live! Even I have have access to some of these records. I do not get the same info that lenders can get but if I ask my systems if you live at 1 the road, somewhere it will come abck and say yes or no based on data held on these records.

Move into your own house and then complain bitterly about how you have been sold these additional products under the guise of mortgage acceptance...even if you want to keep the new products. These products were mis-sold to you in the first place.

Hi Zeb

I wonder if you could help me.

I’m looking for a bit of advice on my mortgage application. I have been banking with HSBC for 5 years. I will be able to put down deposit of 200000, the value of the property is 410000, I got decision in principle certificate several days ago from HSBC, now I’m worried. My HSBC internal score is 70, they seem happy with that. I just checked my Experian credit, realised I didn’t have ELEC.ROLL for my addresses, I simply didn’t pay attention to that kind of stuff, didn’t realise that stuff would be so important, will my app be declined because of this? Also, at the appointment with mortgage adviser in the branch, the gentlemen advised me to open a new credit card, saying that would do good for the application, so I let him to open a credit card for me on that day, he also transferred a lot of funds from my current account to online savings account, saying that would be more secure, not clear about that. I later found out that open a new credit card would affect my credit score. They have arranged another appointment for the app next week. BTW, they didn’t mention anything about my credit score on the day they gave me the certificate, they just told me that I got good account with them and it’s good I will be able to put down large deposit. My wage is 4000 before tax. They took a copy of pay slips.

Could you let me know your thoughts on my app please ? I really appreciate your time.

Congratulations on your mortgage!

Mines a large vodka & tonic with plenty of ice next time I see you in the bar!

:))

Finally received confirmation today from HSBC that our mortgage has been approved subject to valuation! This is obviously fantastic news and a huge relief!!!

Thanks for your help with this one.

Cool,

Although I have heard that your DTI ratio is worked out on a monthly basis, i.e. total credit commitments/ total gross monthy salary... in which case we are around 15%. When we factor in the mortgage this increases to 30%. We might be pushing it if they use total debt/ gross annual salaries as we're closer to the 40% mark before mortgage on that basis!

Will let you know how it goes!

Thanks again.

I am a mortgage broker and not an underwriter so I cannot give a fully qualified opinion but based on the info you have supplied to me i would not have a hesitation puttintg you forward to any major high street bank. I know you have significant outgoings for commitments but if most of this is for a loan that has an end date (unlike a credit card which doesn't and can be added to at any point) then I do not see the underwriters worrying about this too much as long as the total value of debt is not more than 33% of your gross annual income (approx £20,000).

I would think that the bniggest problem now is having thwe house meet the valuation and not having any significant problems with it or its structure.

Good Luck :)

Thanks for the reply Zeb.

My credit card debt is c.£5.5k and I intend to pay around 30% off at the end of this month with a bonus I am due to receive. This is old debt that I have maintained the minimum payment on (stupid I know!) and not something that I've gone crazy with recently. I have been putting most of my personal disposable income into our savings in order to meet the deposit requirements, once we're in the new house I can obviously divert this money to the CC. I aim to be totally debt free by 2014 (except from the mortgage...). I provided all the outstanding balances of the loan and CC on the initial app so I would hope that this would have been declined from the outset if it was a problem?

My partner on the other hand hos no such commitment so most of his disposable is saved... will this help us?

We have ample savings over and above the 10% required (around another £12k) which we are keeping back to cover legal expenses, some initial work on the house and then the emergency fund.

I work for another major bank in their investment management division so I was able to pull the details on their mortgage underwriting (rates not so competitive though!). Based on their lending criteria we would have passed...they only seemed to be interested in accounts and payment history in the last 3 years though? (with the exception of default or CCJ).

I just hope things go as smoothly as possible.

The underwriters already know more about you than you can possibly imagine.

They know what your income is because you havwe declared it and I assume they can check your bank accounts for regular manadates toprove thios so they are not worried about your income.

Your outgoings will always be a concern to them but they have full access to your credit file so they can check who you owe to, what you owe, what you pay every month and even if you had a late payment or missed payment. They know if you have had any defaults, missed payments, ccj in the last 6 years. They know if you have a current debt managemet program or an IVA or if you have been bankrupt. They will know through previous searches or other commitments which addresses you have lived at for the last 6 years and if you are on the electoral roll.

While I do not know the HSBC underwriting criteria or DTI ratios they use in their calculations I would estimate that you should be ok for affordability. Like you said, you passed the Agreement in Principle, all the underwriters will do now is check your bank accounts to ensure they have details of all credit commitments that you are paying out for (sometimes some are not listed on your credit file but are on bank accounts for direct debit) and double check you are still within affordability.

The figure you stated for monthly commitments does seem to be very high and may be a concern but I assume that most of this figure is a short term loan and not credit card debt. If it is mainly credit card debt I think it will cause you problems as this would point to around £10k - £15k+ of CC debt which the lender will not like. If it is short term loan then I think you should be fine for affordability.

The reason they are doing so much checking is because a 90% loan is the riskiest business that they can enter into so they just want to ensure that you pose as little risk to them as possible. And one last little thing that hopefully will ease your worrying. EVERY SINGLE APPLICATION that is put forward for a mortgage has to go to an underwriter and checked under the same criteria, they haven't just picked you out for special attention.

Hi All

My partner and I have recently passed the initial credit checks on a mortgage with HSBC, I have been advised that as the LTV is over 80% (90%) it has to be referred to their underwriting team check affordability and confirm that the details I have provided re: salary and regular commitments stack up. We both bank with them so they should be able to verify this with ease.

It is a joint mortgage for £123,750, with a proposed monthly payment of £760, and my partner and I have joint salary of £59,225. I have some regular credit commitments in the form of a staff loan from my employer and a credit card that amount to £655 per month. The loan is due to be repaid in 2014 and the credit card is slowly coming down. I understand that underwriter will annualise my credit commitments (using a 3% monthly payment on the balance of my credit card) and deduct this from my salary before organising multiples. My partner has no credit commitments so by my calculations this reduces our joint salary to £51,365 or a 2.4 joint salary multiple based on the mortgage we applied for.

Our joint monthly net income is £3,640. When we deduct the proposed mortgage payment along with all our regular commitments (credit, council tax, untilities, gym, mobiles, insurances) we have residual income of £1,778 per month in which to cover other discretionary spending such as petrol, food and entertainment.

I appreciate that salary multiples play some part (or even no part) in some lenders decision making. Does anyone have experience of HSBC are their underwriting requirements? In terms of affordability should I be including things like food and entertainment into my calulations? When I went through the applications the only commitments HSBC wanted to know about where those I listed?

I have read various reports of people being accepted in principle and then when the underwriters take a look the application is turned down. I also understand that HSBC are quite particular about the applicants they accept but I hope the fact we bank with them and run our accounts in a decent way that this will count for something!?

Any thoughts from people who have knowledge/experience of this would be greatly appreciated.

Thanks

PS I should also state that neither of us have history of CCJ's/ Defaults.