HSBC Mortgage - AVOID AT ALL COSTS !!!

didnof

to anyone who is thinking of using HSBC for their low interest mortgages for only 10% deposit, please think twice as the whole experience has put me off and will ensure i never use them again for any product in the future.

over the summer we decided to buy a property which was a repossession and was an incredible deal, £87K for a 4 bed house, little work that needed doing. we'd decided on a mortgage from abbey, which was 15% deposit and rates of 6.1%, not great but it meant we would get a good deal.then HSBC announced a 10% deposit mortgage at only 3.99%, 'great' we thought, savings all round!

we told them that with it being a reposession we needed to move quick as there is a time limit for this sort of purchase, and the first meeting we had we turned up at the branch to be told the mortgage manager was ill. fair enough people get ill, but no phone call? no replacement on the day? then this person was taking a week's holiday and the next earliest appiontment was 2 weeks later!

obviously this was unacceptable and we needed another appointment asap. they told us to do it over the phone as this would save time, upon calling them they told us to forget it as it takes 2 or 3 weeks more over the phone! we then called HSBC and tried to arrange another appointment (no help from HSBC again). we found a place in southall and both my wife and i booked a day off work to attend.

from the very start they tried to push us towards a long term mortgage, but we made it clear that we could afford £600 per month and wanted a mortgage to suit, which turned out to be a 13 year mortgage, and for every £1 we borrowed we paid back £1.30, quite a good mortgage. after declining their offer of insurance, life insurance and countless other products we left the meeting feeling quite positive.

about a week later we got a call saying that our mortgage had been declined due to us 'not being able to afford it', absolutely ridiculous as we could afford it for either of us paying it. we smelt a rat and knew it was because it might not be a good deal for them. desperate for things to go ahead with the time constraints, we offered to pay a 15% deposit and longer terms mortage. they agreed this and insisted it cold be no less than 19 years and for every £1 borrowed having to pay back £1.4- so much for not being able to afford it as they took an extra 5% deposit off us!

they lure customers in with great prices and offers, and then decline them if they are not a good deal for them, they are only interested in themselves and dont care in the slightest if you miss on on the house you've been chasing. AVOID AT ALL COSTS IF YOU DNOT WANT TO GO THROUGH THIS!!!!!!!

_Andy_

So in short - you applied for a mortgage, HSBC declined it on affordability, then offered it on a longer term (lower monthly payments = more affordable).
not quite sure where the problem is.

didnof

andy, the point is that i can confortably afford £600 per month on my own, never mind with my wife helping. my wife can also afford £600 on her own. HSBC were well aware of this and when i questioned our contact she hinted that they pick and choose their customers. the issue is not that we couldnt afford £600 between us but that they got an extra 5% deposit and more interest in the long term.

pmcg01

Everyon says they can afford it, when many can't - that is why the house you treid to buy was repossesed.

Banks ahve been slated for lending to people who can not afford repayments, not they are exercising caution, you are slagging them.

Tuscan

did you get a fixed deal or can you over pay to cut the loan time and long term interest? otherwise you could just look for a better deal in a few years..

_Andy_

It's not whether you think the mortgage is affordable, it's up to the lender.
They've offered you the mortgage anyway so why not just take it and overpay?

didnof

another thing i forgot to mention our arrangement fee which was close to £1000 was supposed to be added to the mortage but they messed this up and it means that we have to pay this up front!

we're fixed for three years, we can pay an extra 10% per month which we will do, but we're definitely going to change mortage when the 3 years are up, the whole thing left a very sour taste in the mouth.

_Andy_

PS surely they're not 'cherry-picking' in this case as they have actually offered you the mortgage?

didnof

they declined our mortgage as they were earning enough out of it. they filter out the ones which they dont like the look of and take the ones which they will earn a few £££ off, so when we came back with an offer where they would earn an extra 33% out of us they accepted - the fact that our contatc suggested that this happens only confirmed it to us.

vaporate

Did I miss something? It is obvious, going by what the Op said, that the bank was trying to screw them every which way but loose.

Dodge city anyone?

_Andy_

Nothing to do with trying to 'screw them' - it's just how their affordability model works.
Need to cool the paranoia down guys.