HSBC Mortgage quotation expired?

m.lowe

At the start of September I rang HSBC and was given a quotation for a tracker mortgage which was 0.99 above base rate for the term of the mortgage. I immediately applied, filled in the forms and took this along with all of the required proofs into the local branch. HSBC then took a few weeks before coming back to ask for more proofs (earnings and letter from employer confirming employment status, etc). Then, after almost 2 months after I started the application, HSBC tell me the deal which I applied for has expired and I must re-start the application process under a new deal and more expensive deal (1.49% above base rather than 0.99%).

I have made a formal complaint about this, as the extra proofs they needed were totally un-necessary and if they had any brain they would see that I had been making over-payments to my current mortgage provider for 2+ yrs, so it was obvious that I could more than afford the mortgage.

Has anyone else come across this and what do you think my chances are of getting them to agree the original rate?

poppy10_2

m.lowe wrote: »

what do you think my chances are of getting them to agree the original rate?

0% :money:

_Andy_

Normal HSBC practice would be that once you've applied, you've secured the rate. Hard to tell exactly what went wrong here, best thing you can do is see what the outcome of the complaint is.

That said, they as a lender are quite within their rights to ask for whatever proof of income they like - your overpayment history isn't really relevant.
After all, they're potentially lending you 10s or 100s of thousands of pounds.
HSBC has a very, very low repo rate and with good reason.

bluebaron

i got a quote last week and have booked an appointment for tomorrow morning. I was called yesterday to say the rate had changed but if i had everything ready tomorrow than i could still get the old rate.

That said if it goes to underwriting than i wil have to pay the new rate as the application won't start until after that?

m.lowe

Today i've been told that they have approved the mortgage subject to survey, but at the new (higher) rate. I await to hear a response about my complaint.

I'm an insurance broker, if i'd quoted someone for car insurance and they took me up on the quote, i couldnt go back to them to say "sorry the rates gone up now", i'd have to honor the original quote, surely the same must apply to mortgages or do these people just make their own rules up?!!

manikm

m.lowe wrote: »

At the start of September I rang HSBC and was given a quotation for a tracker mortgage which was 0.99 above base rate for the term of the mortgage. I immediately applied, filled in the forms and took this along with all of the required proofs into the local branch. HSBC then took a few weeks before coming back to ask for more proofs (earnings and letter from employer confirming employment status, etc). Then, after almost 2 months after I started the application, HSBC tell me the deal which I applied for has expired and I must re-start the application process under a new deal and more expensive deal (1.49% above base rather than 0.99%).

I have made a formal complaint about this, as the extra proofs they needed were totally un-necessary and if they had any brain they would see that I had been making over-payments to my current mortgage provider for 2+ yrs, so it was obvious that I could more than afford the mortgage.

Has anyone else come across this and what do you think my chances are of getting them to agree the original rate?

what was u doing for those 2 months of nothingness? was u actively pursuing them? ringing them emailing them - surely in this climate (espeically the last two months of financial chaos), it would have been wise to make sure to get the rate and pester them every step of the way.

_Andy_

They're not legally obliged to honour the rate.

Your comparison to insurance is flawed, as insurance quotations are usually valid for a specific time period.

Nice of you to thank people who are trying to help you by the way.

m.lowe

Sorry, I'm new to all this, I am grateful for everyone's help and advice.:beer:

_Andy_

That's ok - hope it gets sorted anyway.