Offer accepted, HSBC mortgage - solicitor problem?
Offer accepted, HSBC mortgage - solicitor problem?
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paulcumbria

Original Poster:

111 posts

208 months

Sunday 20th May 2012
quotequote all
14months of house hunting, potential barn conversions, building plots etc etc....We have finally, after a long time looking, had an offer accepted on a house(Yesterday). My original mortgage offer in principal had elapsed due to the time since offer. I decided to go for an 80% LTV tracker with HSBC and had the offer over the phone yesterday for slightly more than we required. I'm happy with the mortgage and feel absolutely ok with the monthly payments, indeed we have budgeted for an additional few % increase in rates over the next few years. (310 purchase so 248 mortgage).
HSBC have provided me with banking sine I was 16 years old, through university and beyond. I am extremely happy with them, BUT, after going through the application yesterday I did some research via the 'net last night, obviously I came away feeling rather worried....

My concerns aren't HSBC particularly, it is the solicitors. I live in Cumbria, we don't appear to have any 'approved solicitors' and the nearest is one in Bolton (80mins away)- I believe called Russell and Russell. My options are:

Use the approved panel - will probably get Countrywide?
Use a local solicitor, pay extra and go through Countrywide
Use a specific approved, for example Russell and Russell-does it still go through Countrywide?

What is the best thing to do? I don't really want to stop the application process, I'm also aware that the credit searches were done on both myself and partner which will surely cause issue for another application?

We currently own outright and will rent it out, the vendors are moving into an empty, chain free purchase. It should be a relatively straight forward purchase.......

Advice/help appreciated

Regards
Paul

Sarnie

8,373 posts

239 months

Sunday 20th May 2012
quotequote all
paulcumbria said:
14months of house hunting, potential barn conversions, building plots etc etc....We have finally, after a long time looking, had an offer accepted on a house(Yesterday). My original mortgage offer in principal had elapsed due to the time since offer. I decided to go for an 80% LTV tracker with HSBC and had the offer over the phone yesterday for slightly more than we required. I'm happy with the mortgage and feel absolutely ok with the monthly payments, indeed we have budgeted for an additional few % increase in rates over the next few years. (310 purchase so 248 mortgage).
HSBC have provided me with banking sine I was 16 years old, through university and beyond. I am extremely happy with them, BUT, after going through the application yesterday I did some research via the 'net last night, obviously I came away feeling rather worried....

My concerns aren't HSBC particularly, it is the solicitors. I live in Cumbria, we don't appear to have any 'approved solicitors' and the nearest is one in Bolton (80mins away)- I believe called Russell and Russell. My options are:

Use the approved panel - will probably get Countrywide?
Use a local solicitor, pay extra and go through Countrywide
Use a specific approved, for example Russell and Russell-does it still go through Countrywide?

What is the best thing to do? I don't really want to stop the application process, I'm also aware that the credit searches were done on both myself and partner which will surely cause issue for another application?

We currently own outright and will rent it out, the vendors are moving into an empty, chain free purchase. It should be a relatively straight forward purchase.......

Advice/help appreciated

Regards
Paul
Forgive me, but I'm not actually sure what your concern is??

Are you concerned about using a solicitor that you have not chosen or is it because they are 80 miles away?

Or someting else??

Most of my clients, will use the solicitors we use who are in Chester. There is no actual requirement to go in to the office, it can all be done remotely via post.....

paulcumbria

Original Poster:

111 posts

208 months

Sunday 20th May 2012
quotequote all
My concerns are partly the distance, but also the terrible press that HSBC and its countrywide panel are currently receiving..

Sarnie

8,373 posts

239 months

Sunday 20th May 2012
quotequote all
From experience, I have had numerous clients who have 'found a better rate with HSBC' only to come back to me a few weeks down the line after either having their application rejected even though it was initially accepted or just generally recieving poor service.

That said, the reason for this, is that they pitch themselves at the sharp end of the market and undercut most other lenders, but the upshot of this is that they are VERY picky about who they lend to. If you can get a mortgage completed with them, then their rates are great. But if you were one of my clients, I'd be advising you to steer clear of them, if only for the fact that you've spent so long finding a property, don't jeopardise it by spending an age applying to a lender who could pull the plug at any time.

The solicitor issue really isn't an issue, all you have to do is sign and complete the documents they send you smile

ellroy

7,846 posts

255 months

Monday 21st May 2012
quotequote all
Why worry over the distance?

99% of people having conveyancing done don't even bother going into see the lawyers, its all done by post.

Bad press for a Bank? Who'd thunk it? They're all getting bad press. I'd just get on with it if the rate etc were good.

onomatopoeia

3,526 posts

247 months

Monday 21st May 2012
quotequote all
ellroy said:
99% of people having conveyancing done don't even bother going into see the lawyers, its all done by post.
Really? I've only bought two houses but on both occasions I went to the solicitor's office for a discussion about aspects of the purchase and to sign the contract before exchange. I had assumed this was normal, although I deliberately used a local solicitor that I could doorstep if needed rather than a mail-order version both times.

russ_a

4,724 posts

241 months

Monday 21st May 2012
quotequote all
Countrywide are dreadful!

Gazzas86

1,800 posts

201 months

Monday 21st May 2012
quotequote all
I bought a house in-between Portsmouth/Southampton as i work in Portsmouth, mortgage with HSBC etc,
We used a Solicitors that was in Cardiff as my OH's Brother used them and we're cheap, i never went once to the solicitors in person, all done over the phone, or by Fax/Post. Its not uncommon to use a solicitor miles and miles away to sell/buy a house.

paulcumbria

Original Poster:

111 posts

208 months

Monday 21st May 2012
quotequote all
Thanks for the advice, I have instructed a HSBC approved firm in Bolton to work on my behalf. We are waiting the HSBC paperwork and then its a 7 day turn around (allegedly!) to formally offer a mortgage. Therefore we should know by the end of next week....

I'll keep this thread updated!

paulcumbria

Original Poster:

111 posts

208 months

Wednesday 23rd May 2012
quotequote all
Update No.1

Received the paper work today, (Wednesday). We are planning on going to our local HSBC tomorrow afternoon to attempt to get everything verified and sent off. I led to believe this could be hurdle number 1 !!

Sarnie

8,373 posts

239 months

Wednesday 23rd May 2012
quotequote all
So, based on your previous post, your expecting HSBC to offer this mortgae on Wednesday of next week?

I hope that happens for you, I honestly do. smile

NewNameNeeded

2,560 posts

255 months

Wednesday 23rd May 2012
quotequote all
Also applied for a HSBC mortgage recently and read the bad press on their conveyancing services but they had by far the best product, so I went ahead.

It's not been too bad, to be honest. I had to nudge them a couple of times but everything moved smoothly.

The distance shouldn't matter.

jdw1234

6,021 posts

245 months

Thursday 24th May 2012
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Does anyone know of a solicitor on the HSBC panel that isnt completely rubbish?


paulcumbria

Original Poster:

111 posts

208 months

Thursday 24th May 2012
quotequote all
Sarnie,

Whilst I also hope this is the case, I expect not!

paulcumbria

Original Poster:

111 posts

208 months

Thursday 24th May 2012
quotequote all
Yes, DJK - fingers crossed it will go smoothly. Papers returned to HSBC today...

98elise

32,714 posts

191 months

Friday 25th May 2012
quotequote all
While it can all be done by post/e-mail, I'd much rather use a local solicitor.

I've bought/sold about 5 times in the past 2 years, and almost with out fail there has been a point where I've needed to get something to them the same day. Its never been a show stopper, but it is good to have the option of dropping doc's/cheques at their offices.

sc0tt

18,296 posts

231 months

Friday 25th May 2012
quotequote all
I used a local solictior. 1 mile away, meant that any post sent to me was signed off and taken straight back.

My mortgage lender at the halifax lived round the corner and used to drop paperwork off to us aswell.

Still took 6 months

Justin Cyder

12,624 posts

179 months

Friday 25th May 2012
quotequote all
The issue with HSBC is they restricted their approved solicitor list to about 80 firms. This meant that deals were falling through as the solicitors were overwhelmed with work. However, in the face of a barrage of criticism, they have relented. The original change in policy was a spurious attempt to control fraudulent transactions, but someone, somewhere in HSBC with a hand on the levers has seen sense.

I would have thought that what with this being all over the financial papers in the past few weeks, one or two of the more self righteous in this thread would have known about this, but hey ho.rolleyes

paulcumbria

Original Poster:

111 posts

208 months

Monday 28th May 2012
quotequote all
Update number 2

Well today I received a phone call saying our mortgage was approved and they were taking the fee for arrangement. They said expect the survey people to call within 48 hours. Impressive, I think! A courtesy call was also greatly appreciated, although the call centre when I returned the call (they left an answerphone message) was less impressive......

Have to say HSBC have been excellent, the solicitors, not so sure about! Time will tell....


paulcumbria

Original Poster:

111 posts

208 months

Monday 4th June 2012
quotequote all
Update No. 3

Survey and valuation this coming Wednesday, hopefully will try and get up to meet him to discuss our thoughts for extension plan...