HSBC Mortgage; do I or don't I?
Discussion
Hi all,
My first post here in the finance section
I've just had an offer accepted on my first house. I have a mortgage in principle from HSBC (and am a customer of theirs).
I am a first time buyer, so the beginning of the chain, and the house I'm buying is a 92yr old lady now moving in with her daughter, so the end of the chain. The result; a non existent chain.
Every person; solicitor, estate agent, mortgage brokers have said to me "don't go with HSBC, they're a pain and take ages".
Is it truly the case? The difference is that when my fixed period of mortgage ends in 2yrs time with HSBC it will be their variable rate (currently 3.94%) whereas with the best other mortgage avaiable to me it will be a minumum of 5.25 (4.75 above base). That's a large difference.
I've searched in here and found stories going both ways - some say HSBC are the biggest pain in the world, others saying it couldn't have gone smoother.
I'm pondering and not sure what to do
My first post here in the finance section
I've just had an offer accepted on my first house. I have a mortgage in principle from HSBC (and am a customer of theirs).
I am a first time buyer, so the beginning of the chain, and the house I'm buying is a 92yr old lady now moving in with her daughter, so the end of the chain. The result; a non existent chain.
Every person; solicitor, estate agent, mortgage brokers have said to me "don't go with HSBC, they're a pain and take ages".
Is it truly the case? The difference is that when my fixed period of mortgage ends in 2yrs time with HSBC it will be their variable rate (currently 3.94%) whereas with the best other mortgage avaiable to me it will be a minumum of 5.25 (4.75 above base). That's a large difference.
I've searched in here and found stories going both ways - some say HSBC are the biggest pain in the world, others saying it couldn't have gone smoother.
I'm pondering and not sure what to do
In truth Tony they can all be a pain. I found that the whole process moved faster when I learned to push each stage myself by applying firm but fair pressure when necessary.
HSBC are offering you the best rate, you're not in a chain and they will want to sell to you. Give them a chance but relay your fears and ask them to prove the poor reviews wrong.
To secure against them backing out you could always send the vendor say £1k via your solicitor to demonstrate your intentions to complete. By way of a little security.
Communication all the way.
HSBC are offering you the best rate, you're not in a chain and they will want to sell to you. Give them a chance but relay your fears and ask them to prove the poor reviews wrong.
To secure against them backing out you could always send the vendor say £1k via your solicitor to demonstrate your intentions to complete. By way of a little security.
Communication all the way.
If you are using a cheap solicitor then they are s
t.
If you are using a good and pragmatic one who will not let the chip on their shoulder from HSBC culling their panel only to appoint the industry joke as their sole supplier (more to it than that but this is very shorthand) then you will be fine.
I have done 4 or 5 now and so long as you make sure that you play it by the numbers and for what it is then it is fine, although the transaction will typically take about 7-14 days longer. You will have to pay about £192 iirc to cover the cost of HBSC's reps. and your solicitor may well ask for an additional £150+vat due to the extra work entailed their end. If the maths works then great if not then walk away.
I have heard of agents advising sellers to ignore buyers using HSBC but their are just being silly. So long as everyone is aware of the game in play it is just fine.
t.If you are using a good and pragmatic one who will not let the chip on their shoulder from HSBC culling their panel only to appoint the industry joke as their sole supplier (more to it than that but this is very shorthand) then you will be fine.
I have done 4 or 5 now and so long as you make sure that you play it by the numbers and for what it is then it is fine, although the transaction will typically take about 7-14 days longer. You will have to pay about £192 iirc to cover the cost of HBSC's reps. and your solicitor may well ask for an additional £150+vat due to the extra work entailed their end. If the maths works then great if not then walk away.
I have heard of agents advising sellers to ignore buyers using HSBC but their are just being silly. So long as everyone is aware of the game in play it is just fine.
I've just completed and gone through the whole application, vetting and acceptance process with HSBC. They were the cheapest by quite a long shot for me and also had to manage the sellers expectation regarding time period and completion.
I found the whole mortgage application process very corporate, I did have a single contact, but they frequently weren't there and had to go through the call centre. Keep on top of the application, jump through the hoops (they did ask me and the mrs for a lot of detail) and be prompt and responsive of what they ask.
It might be a ball ache now, but consider what you will be saving over the course of the mortgage.
As another poster said, it's about communication with the seller. Remember they also want you, as you are a first time buyer and they will want rid asap also.
I found the whole mortgage application process very corporate, I did have a single contact, but they frequently weren't there and had to go through the call centre. Keep on top of the application, jump through the hoops (they did ask me and the mrs for a lot of detail) and be prompt and responsive of what they ask.
It might be a ball ache now, but consider what you will be saving over the course of the mortgage.
As another poster said, it's about communication with the seller. Remember they also want you, as you are a first time buyer and they will want rid asap also.
Just been through the pain. Worth it for the deal. Didn't appreciate the call from their 'MSC' 2 days before completion saying that they didn't have record of a signed offer letter and were therefore not releasing funds. I signed the letter on the 17th August - they lost it.
And it was all down to me to fix it. Luckily I have an understanding local branch, premier manager and employer.
Get a decent solicitor, swallow the £200 extra charge (although don't hold back at telling HSBC how much you dislike it) and crack on - just keep an eye on progress
And it was all down to me to fix it. Luckily I have an understanding local branch, premier manager and employer.
Get a decent solicitor, swallow the £200 extra charge (although don't hold back at telling HSBC how much you dislike it) and crack on - just keep an eye on progress
What's your LTV?
How many times your income are you trying to borrow?
Employed or self employed?
HSBC like bog standard cases, anything slightly outside of this and they don't like it.
Generally their rates are very competitive but they are very stringent in their underwriting and criteria which means they have by far the highest rate for declined applications after the AIP stage. If you can get a mortgage through with them then great, just not sure I'd want to rely on them for a purchase.
How many times your income are you trying to borrow?
Employed or self employed?
HSBC like bog standard cases, anything slightly outside of this and they don't like it.
Generally their rates are very competitive but they are very stringent in their underwriting and criteria which means they have by far the highest rate for declined applications after the AIP stage. If you can get a mortgage through with them then great, just not sure I'd want to rely on them for a purchase.
Thanks all - it seems being sensible is key here!
I've just spoken to my solicitor who has said that apparently he is in the "Conveyancing and Quality Scheme" - which means he is one of the limited solicitors who can act for both me and for HSBC, so I imagine that will be a huge plus point.
In which case, I think I'm going to go with that
I've just spoken to my solicitor who has said that apparently he is in the "Conveyancing and Quality Scheme" - which means he is one of the limited solicitors who can act for both me and for HSBC, so I imagine that will be a huge plus point.
In which case, I think I'm going to go with that
Sarnie said:
What's your LTV?
How many times your income are you trying to borrow?
Employed or self employed?
HSBC like bog standard cases, anything slightly outside of this and they don't like it.
Generally their rates are very competitive but they are very stringent in their underwriting and criteria which means they have by far the highest rate for declined applications after the AIP stage. If you can get a mortgage through with them then great, just not sure I'd want to rely on them for a purchase.
85% LTV (first time buyer)How many times your income are you trying to borrow?
Employed or self employed?
HSBC like bog standard cases, anything slightly outside of this and they don't like it.
Generally their rates are very competitive but they are very stringent in their underwriting and criteria which means they have by far the highest rate for declined applications after the AIP stage. If you can get a mortgage through with them then great, just not sure I'd want to rely on them for a purchase.
Borrowing just over 4 times my salary
Employed with same company for 12years
HSBC customer with healthy savings account, no credit card or anything etc. etc.
TonyHetherington said:
Thanks all - it seems being sensible is key here!
I've just spoken to my solicitor who has said that apparently he is in the "Conveyancing and Quality Scheme" - which means he is one of the limited solicitors who can act for both me and for HSBC, so I imagine that will be a huge plus point.
In which case, I think I'm going to go with that
That will be fine, should run as normal then.I've just spoken to my solicitor who has said that apparently he is in the "Conveyancing and Quality Scheme" - which means he is one of the limited solicitors who can act for both me and for HSBC, so I imagine that will be a huge plus point.
In which case, I think I'm going to go with that
Is there a HSBC branch in the same town as you and your solicitor?
If so go in branch and ask for the same deal. You will then have a point of contact in branch and you can pester them rather than having to go through the call centre.
Had a nightmare of long call centre waits and posting things backwards and forwards with another high street mortgage, could have been resolved much faster by just popping into to the branch with documents but as I'd arranged it online the branch weren't interested.
If so go in branch and ask for the same deal. You will then have a point of contact in branch and you can pester them rather than having to go through the call centre.
Had a nightmare of long call centre waits and posting things backwards and forwards with another high street mortgage, could have been resolved much faster by just popping into to the branch with documents but as I'd arranged it online the branch weren't interested.
Yep - I'm going for a meeting tomorrow in branch (my intention to officially apply for the mortgage then), barely 10mins from where I currently live and where I will live, and only 10mins from my solicitors. I'm hoping it all being close together will mean I can drop in and talk to people rather than get lost in call centres.
It's my first house purchase so it's all very new to me
It's my first house purchase so it's all very new to me
Rude-boy said:
If you are using a cheap solicitor then they are st.
If you are using a good and pragmatic one who will not let the chip on their shoulder from HSBC culling their panel only to appoint the industry joke as their sole supplier (more to it than that but this is very shorthand) then you will be fine.
I have done 4 or 5 now and so long as you make sure that you play it by the numbers and for what it is then it is fine, although the transaction will typically take about 7-14 days longer. You will have to pay about £192 iirc to cover the cost of HBSC's reps. and your solicitor may well ask for an additional £150+vat due to the extra work entailed their end. If the maths works then great if not then walk away.
I have heard of agents advising sellers to ignore buyers using HSBC but their are just being silly. So long as everyone is aware of the game in play it is just fine.
HSBC ditched their restricted panel policy in May - http://www.guardian.co.uk/money/2012/may/16/hsbc-d...t.If you are using a good and pragmatic one who will not let the chip on their shoulder from HSBC culling their panel only to appoint the industry joke as their sole supplier (more to it than that but this is very shorthand) then you will be fine.
I have done 4 or 5 now and so long as you make sure that you play it by the numbers and for what it is then it is fine, although the transaction will typically take about 7-14 days longer. You will have to pay about £192 iirc to cover the cost of HBSC's reps. and your solicitor may well ask for an additional £150+vat due to the extra work entailed their end. If the maths works then great if not then walk away.
I have heard of agents advising sellers to ignore buyers using HSBC but their are just being silly. So long as everyone is aware of the game in play it is just fine.
Ive had mine with them for over a decade and everythign has been fine, they let me let it out for a few years no problem as long as they got their money! it doesn't look like much can go wrong with your buy, no chain, no extra credit checks or anything you bank with them and have done for years they know your a safe bet seems the sensible option to me.
I took out my first mortgage with HSBC, and had no chain (purchased direct from developer).
Took 3 days from start to finish. Went so quickly, I ended up with the keys before I was ready to move in - as everyone had warned me how st and slow they were 
May be an exception...
TH - You spoken to Scotal?
Took 3 days from start to finish. Went so quickly, I ended up with the keys before I was ready to move in - as everyone had warned me how s
t and slow they were May be an exception...
TH - You spoken to Scotal?
TonyHetherington said:
Yup, then onto HSBC variable.
The mortgage in principle (still valid) was at 4.29% for 2yrs not 4.49% - do they honour that rate?
There are cheaper two year fixed rates around (that revert to a similar SVR) than that 4.49% product.The mortgage in principle (still valid) was at 4.29% for 2yrs not 4.49% - do they honour that rate?
AIP doesn't normally secure the rate, it's just an initial acceptance based on the outline of what your looking to do in conjunction with running a credit check.
Jobbo said:
HSBC ditched their restricted panel policy in May - http://www.guardian.co.uk/money/2012/may/16/hsbc-d...
As said, shorthand. There is still a lot of ill feeling about firms being bounced off with little or no warning, followed by a back track and being forced into having to go down the CQS route from many in my region. More money for a Society that seems to be most interested in the interests of those with offices within a mile or 3 of theirs than those outside the smoke.
We aren't yet CQS (in progress) but have had instructions from FD since then, although no pure HSBC.
Now that Santander has added to the party by requiring membership by 31/3/13 everyone will have to go there. Many are unhappy as it is another overhead, and another set of procedures that codify what any half competent solicitor is doing already and has done for many years.
Edited by Rude-boy on Tuesday 20th November 16:51
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