This is more for MSE... But please beware of HSBC and funny rules about CCs

[Rainbowhairdontcare]

On the advice of my mortgage broker that doesn't work with HSBC, he suggested I talked to them as I've been doing my banking with them for 10 years...

All was fine and dandy until they declined because I have a balance on 0% of their own credit card! I don't pay any interest and on time so it seems like such a silly thing to be declined on.

Other mortgage brokers have said I have to clear that CC, but that's about it, it won't affect my chances of getting one in principle.

@LoveGrowsWhere as far as I understand it's ok to have them as long as you clear the balance each month

This is the thing that is confusing me and makes me think there is more to it.

Reasonable debt is not seen as bad by mortgage providers - on the basis it is not excessive, not increasing at a rapid rate, and is being serviced properly (no arrears, excesses etc). In fact, having debt shows you can build a credit history and pay it back / manage it etc. All that usually happens is that the lender reduces the max loan it is willing to advance.

OP have you tried talking to HSBC personally and asking them what exactly the problem is with the credit card account? Presumably it is a card they have marketed to you?

@Rainbowhairdontcare are you on, or going on mat leave soon? Or have I misread? If you are then it will have a major impact on affordability, and any lender you go to will make you jump through hoops.

If you only missed the ccard payment Friday it is highly unlikely that it will show on a credit file yet.

HSBC are notoriously difficult to get a mortgage with. Not long ago they were declining 2 out of 3 mortgages upon full application.

Honestly you need a new broker, and your husband needs to be on the electoral roll.

@Blankspace4 I have yes, and they only said it had to me the missed payment.... I've already wrote a formal complaint about it as it wasn't my fault at all. What you've said about offering less is what all mortgage brokers have quoted. I'm still puzzled by HSBC and to some extent Halifax but I'm sure the problem with Halifax is the electoral roll (HSBC didn't have an issue for example).

@nrpmum yes I'll be on ML from November. I will keep my full wage for 12 weeks (thanks to the good will of my employer) and will also get MA on top. What the brokers have said is that my trust money will help see lenders that I have the extra cash to pay for my leave, so that it shouldn't be a problem.

Ah - the mat leave may be a factor here. Frustrating though it is for you; any lender will see a future drop in income as a negative. It may honestly be best to stay put until after your mat leave is over and you’re back at work with a stable income.

@Blankspace4 brokers seem to think it will be ok (even the one who was useless). They've all said it depends on the lender and that it would be counted as discrimination. (Even L&C who quoted me a lot less).

Others have suggested to get a letter from my employer.

I know that if it doesn't get sorted we'd have to wait til Feb-Mar 2021 which is when I'd have my three payslips ready to go.

However, we're so desperate to not pay rent anymore that we just might take anything. (We also have a dog and a landlord who might kick us out as soon as the term expires, as they've refused to change it to a rolling contract).

@Rainbowhairdontcare true that lenders are ok about it, but they will ask for written confirmation of your return date and what hours and salary you will be on upon your return. Some employers are not keen to provide that information because it is a bit like pissing in the wind.

I had a case a few years ago with a lender and we had to go back and forth quite a bit to get exactly what they wanted.

I have the most amazing employers. They're even paying for 12 weeks full pay even though I don't qualify for SMP. Thanks to this, not only will I get those 12 weeks but will also get MA on top.

We also have a tacit agreement that there are things that I could be doing that nobody else can (without getting into too much detail at least 25% of our customer base is Spanish speaking and I'm the only Spanish speaker in the the whole company).

They want me back (so do I!) So I'm sure a letter wouldn't be a problem at all.

Have you considered how you will pay the mortgage from month 4 onward - will you be returning to work in week 13 or can you show the mortgage company you have another way of paying from week 13-52 (or however long you’re planning on taking for your mat leave?)

Because I will be getting MA on top of my contractual MP that gives me two extra months of "salary pay" which should take me to 5.5 months. After that I'll also have the savings from my trust (£680 on average every month). The last three months I'll also get around £300 UC pm.

There's a few issues there. Electoral roll, missed payment and maternity pay.

Did it fail at AIP?

Will the missed parent show so soon? It was just last week.

Yes it failed at AIP with HSBC, they said it was the card, but the card is with them so I'm sure they'd know.

Halifax said I needed to call (which I'm assuming is because of the electoral roll).

Also on my credit reports my car loan and another credit card which both have been paid in full are showing.

I dont know how often they refresh though or if lenders get access to a different one.

OP, if you go to NatWest they will take your overseas trust income into account. HSBC do not recognise overseas income, I know that because I have an income from outside of the UK.

I have banked with First Direct since they started (25 years ago I think). They can see that this income has been paid into my current account every month for the last fifteen years (⅓ of my income so a fair proportion), their rules don’t allow them to take it into account but I have had two mortgages with NatWest who do.

@LifeOfBox may I ask what currency is it in and how does it get paid?

Mine gets deposited in a bank account (in my name) in the local currency which then I withdraw from a cash machine and deposit it into my UK account.

USD direct transfer from US payee to First Direct.

Ty! I think some currencies are acceptable and others aren't. Mine is in Mexican pesos and I've been told it's too volatile to be considered.

Your broker should've gone through your full credit reports (preferably at least 2 or 3) before applying for the AIP. Electoral roll should've been corrected. Ignore the scores, the lenders don't use them.

If it failed at AIP it probably hasn't even been looked at by an underwriter.

As yours isn't straightforward you need to go to a Lender who manually underwrites applications, ie takes into consideration your reasons. Big lenders like HSBC and Barclays will catch you out on their algorithms at AIP.

The recent late payment is going to scupper a few of them until it's sorted out. In the meantime, go to an Independent whole of market broker who can place you with the right lender and has run through your case with a BDM first before applying.

@Kobr yes, that's the type of broker I'm using.

I'm hopeful about that letter from HSBC explaining what happened. I'm think my credit file will be back to normal in two months time.

I would certainly try Natwest as they take foreign income (as do Santander, but they take the mid rate and then take off 30% for market fluctuations)

Just one broker thought it was possible, but most brokers agrees it was going to be impossible to use it for affordability apart from short term (ie my ML).

Hilarious that the “worlds local bank” HSBC don’t take into account overseas income 🙄🙄

OP - is there any way you could get the payment sent directly to your main bank account? You’ll have to accept the rate your bank gives to convert but this will likely be better than what you’re doing at the moment (taking out the cash and paying in). In the eye of the lender, the cash could be coming from anywhere.

I would have to ask the tenant to do so. international money transfers are only done at banks, so I doubt she'd like the extra hassle of having to go the bank speak to someone and wait for the transfer to come through.

Next time I visit I'll see if there's any way to automate it.