HSBC Points System

disgruntled_home_buyer

Please help

I applied for a 90% LTV mortgage with the HSBC and this was agreed in principal (for a higher amount than I wanted to borrow). I supplied all relevant documentation - 3 months bank statements etc only to receive a call today explaining that my application should have never been passed to the underwriters because I didn't meet HSBC's point system.

They will not explain how this system works nor will they let me speak to the underwriter. I checked all 3 credit ratings today and I scored 873. I have two other properties where the rental income covers 125% of the repayments (in any case HSBC said that they don't take rental income into account) and my net salary easily covers the mortgages.

Why haven't I passed there system and what is my next course of action? Will this effect me applying for a mortgage elsewhere?

I have already found a property and instructed solicitors, surveyors etc.

Thanks in advance for any help

Lunary

I spoke to them regarding their lifetime tracker mortgage a couple of weeks ago and was told that because I am not working (SAHM), we were not able to borrow the amount we needed. My partner's salary is £31,000 and we only needed to borrow £50,000. If I had earnt 3,400 a year we could have borrowed the £50k.

Instead, and with some trepidation, I contacted First Direct as they had a similar deal to HSBC. Despite being a sister/subsidiary company of HSBC, First Direct told us that in principal there was no problems with securing the mortgage on just the one salary. We are awaiting the final decision as our application is with the underwriters now.

It seems to me that HSBC currently have some really good deals on the market and as such they are able to cherry pick their borrowers and so have more stringent criteria for borrowing.

I hope you are able to find a more accommodating mortgage company soon. Although it is difficult to advise when HSBC didn't let you know what the issue was with your application.

TEDDYRUKSPIN

disgruntled_home_buyer wrote: »

Please help

I applied for a 90% LTV mortgage with the HSBC and this was agreed in principal (for a higher amount than I wanted to borrow). I supplied all relevant documentation - 3 months bank statements etc only to receive a call today explaining that my application should have never been passed to the underwriters because I didn't meet HSBC's point system.

They will not explain how this system works nor will they let me speak to the underwriter. I checked all 3 credit ratings today and I scored 873. I have two other properties where the rental income covers 125% of the repayments (in any case HSBC said that they don't take rental income into account) and my net salary easily covers the mortgages.

Why haven't I passed there system and what is my next course of action? Will this effect me applying for a mortgage elsewhere?

I have already found a property and instructed solicitors, surveyors etc.

Thanks in advance for any help

I will explain why you have been declined. I have to say you do not need to begrudge HSBC for this. I used to work with them and it rather makes sense to be honest.

I can only say, you would have been in front of someone who has no clue, hence, a trainee.

Anyway, you have two buy-to-let properties with other lenders. This is the reason why they have declined the mortgage offer. They will not take in the money made by the property unless you have 3 years tax receipts showing that you are making money from them. As you are renting them out, I really doubt you will be declaring much tax on them.

You have not mentioned anything about other liabilities you have such as car loans etc etc.

Anyway, I hope I have answered this for you. The only way they would consider this along time ago, if you would be happy to transfer the buy to let to them. Unfortunately, they have took away buy to let mortgages and they are only available to the premier clients.

TEDDYRUKSPIN

Lunary wrote: »

I spoke to them regarding their lifetime tracker mortgage a couple of weeks ago and was told that because I am not working (SAHM), we were not able to borrow the amount we needed. My partner's salary is £31,000 and we only needed to borrow £50,000. If I had earnt 3,400 a year we could have borrowed the £50k.

Instead, and with some trepidation, I contacted First Direct as they had a similar deal to HSBC. Despite being a sister/subsidiary company of HSBC, First Direct told us that in principal there was no problems with securing the mortgage on just the one salary. We are awaiting the final decision as our application is with the underwriters now.

It seems to me that HSBC currently have some really good deals on the market and as such they are able to cherry pick their borrowers and so have more stringent criteria for borrowing.

I hope you are able to find a more accommodating mortgage company soon. Although it is difficult to advise when HSBC didn't let you know what the issue was with your application.

You have not told me both your ages etc and no mention about what type of work your partner is doing? Temporary, permanent or fulltime.

Lunary

TEDDYRUKSPIN wrote: »

You have not told me both your ages etc and no mention about what type of work your partner is doing? Temporary, permanent or fulltime.

Oh, he is in a permanent, full time job, a construction site manager. He is 40, I am 30. To be honest, I don't hold any grudges, I just found it surprising that we only required a 40% mortgage on our property and we didn't qualify. I'm quite glad as we found a much better deal elsewhere

Dave_Ham

In my opinion only, I have spoken with quite a few declined HSBC mortgage customers & it appears they are very sensitive around clients with additional properties.

They also seem to be nervous around the self employed. That withstanding their residential mortgage rates have been very strong over the last year, particularly in the 90% bracket..

Also word on the street is that Brittania are pulling their 90% product this weekend !!

disgruntled_home_buyer

In response to teddyrukspin

Thats the annoying thing, i don't have any loans for cars etc outstanding and despite receiving income on my other properties my salary covers those mortgages too.

It seems like a total loss with them - i just wish they had been upfront from the start.

disgruntled_home_buyer

Dave_Ham wrote: »

In my opinion only, I have spoken with quite a few declined HSBC mortgage customers & it appears they are very sensitive around clients with additional properties.

They also seem to be nervous around the self employed. That withstanding their residential mortgage rates have been very strong over the last year, particularly in the 90% bracket..

Also word on the street is that Brittania are pulling their 90% product this weekend !!

i'll check brittania out - i wish the lenders would start offering better rates, its obvious they are creaming huge margins at the moment.

owitemisermusa

Off-Topic Alert!!

I think all talk of margins these days are sooooo suspect. God knows what these banks are still hiding behind gobbledegook and magic figures. I'm not sure if I'll ever truly trust figures and 'instruments' from financial institutions again. Creative accounting and business practices galore!


Now back to the OP:

I hope you can find a suitable mortgage product soon before they all disappear. There's no fighting or reasoning with HSBC, it's like 'credit scoring', they never say how they do it.

disgruntled_home_buyer

disgruntled_home_buyer wrote: »

i'll check brittania out - i wish the lenders would start offering better rates, its obvious they are creaming huge margins at the moment.

Britainia have pulled their 90% LTV. And their seems to be very little 90 LTV products out there. Does anyone know of any products?

Also, what are peoples thoughts on maxing out overdrafts for a few months to generate a 15% desposit?

tomjb

Natwest/RBS has a 5.99% (or 5.94% if you take a gold current account) fixed for 5 years best deal I can find.

Max £150k though, however this suits us looking at things around £165/£170