HSBC rejection??

peckerwood

Hi all

Long time watcher, first time poster, but could really do with some advice right now.

My wife and I have a baby on the way and we have just sold our 1 bed flat for £142,500 and have had an offer accepted on a house for £215,000. We have a 10% deposit to put down and have applied for a tracker mortgage with HSBC. However, much to our shock and disappointment we have just been turned down. Now as far as I can see all looks good, once the sale of the flat is complete we will have no outstanding debts (no credit cards or loans or anything else). We made the application over the phone and the lady we were dealing with seemed genuinely suprised too. We had the agreement in principle but once she had taken down all our details the HSBC internal scoring came back with a rejection. She couldn't offer any explanation, and that was that.

So we immediately checked out credit scores with Experian and I came back with "Excellent" and my wife with "Good" and there seemed nothing in the file to suggest we were a risk (no missed payments, no bad debt).

I'm preparing to look for a new mortgage deal (this time via a broker), but obviously I'm concerned that there is something wrong, and I'm worried that we will end up with another mortgage search against out credit file and another rejection.

Can anyone one suggest what might be wrong? Can we appeal to HSBC? Have I missed something?

Thanks for your time.

anselld

peckerwood wrote: »

"no credit cards or loans or anything else"

This is not necessarily a good thing. They like to see some good credit history and you can't get that without some credit. (well managed obviously)

Other things might be length of time with current employer, salary multiples, number of recent credit searches, etc, etc. Difficult to know if they won't give any clues, but stating the obvious it must presumably relate to the questions on the application.

Sorry, don't know the appeals process.

opinions4u

HSBC tend to be offering some of the best rates on the market at the moment.

As such, they appear to be cherry picking the customers that they lend to.

While I don't doubt that they have some sort of appeals system, the likelihood is that the decision won't be changed.

It doesn't mean that there's anything wrong with you. Simply that they are lending to the near-perfect only!

Find a broker who will set you up with a decent deal elsewhere.

Good luck.

danielanthony

Why is your wife "good" and not "excellent"?

Wutang_2

danielanthony wrote: »

Why is your wife "good" and not "excellent"?

I don't think that is for you to know...

Cannon_Fodder

Unless it has been spelt out to them, they will view your existing debt as being the source of your deposit.

Even if it has been spelt out, it could be enough to not be rated squeeky clean - and as they offer some of the best rates they have no need to take anyone other than perfect.

There are less strict lenders out there - a broker can help point the way.

peckerwood

Thanks all. I have asked HSBC for a copy of all the information that I provided to them in case there was a mistake made somewhere in the application. However, from your replies it just sounds like HSBC can afford to be very picky so I'll approach a broker and try again that way. Hopefully they'll be able to grease the wheels a little better than I could.

Once again thanks for your time.

_Andy_

Not sure if you mean a broker apply to HSBC - HSBC don't accept broker applications and in any case it wouldn't make any difference to your application.

peckerwood

Sorry no I wasn't very clear. I'll stay away from HSBC now, and hope the broker can find me a good deal elsewhere.

opinions4u

danielanthony wrote: »

Why is your wife "good" and not "excellent"?

I thought she was fantastic.

but don't tell the OP