HSBC Mortgage - AVOID AT ALL COSTS !!!

opinions4u

didnof wrote: »

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.

Has it crossed you mind that the adviser had a good understanding of the affordability model and was trying to help?

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.

Lenders giving money to people who say they can afford the repayments, even if they can't, contributed quite significantly to the current economic mess.

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 didn't take the extra deposit. That means you own an extra 5% of the property you live in.

Did they charge a higher interest rate than the original deal discussed? Or are you saying that you have to pay more because the term is now longer?

they lure customers in with great prices and offers, and then decline them if they are not a good deal for them

A lender has control over what the price of the product is and who they advance funds to. They have found a way to lend money to you. Your gripe is, as I understand it, around the mortgage term.

So why not overpay by an amount that would repay the debt within your preferred term anyway?

they are only interested in themselves and dont care in the slightest if you miss on on the house you've been chasing.

Any lenders over-riding concern is "will the borrower be able to pay back the debt?".

They are a commercial entity, not a family member trying to guide you through the housebuying process.

While I don't defend the service standards that you describe in your post I absolutely defend their right to decide who to lend to and on what terms. Responsible mortgage lending is good for everybody concerned.

didnof

you're completely missing the point of what my post is about, their affordability model clearly showed we could afford the place and our lsaraies combined aren't that far away from the actual value of the house - being able to afford it or not in this case was not the issue.

about the deposit, what i meant by taking it is that they asked for an extra £4000 from us. their extended mortage terms dropped our monthly payment by £100, so our saving of £100 per month is nulled by the fact they asked for 40 months worth of what our terms has decreased by.

the point of this post was to warn people that the HSBC mortgage isnt quite what you get on the tin, as we had a very bad experience from what they were offering and what we actually got.

Margin_Walker

didnof wrote: »

you're completely missing the point of what my post is about, their affordability model clearly showed we could afford the place and our lsaraies combined aren't that far away from the actual value of the house - being able to afford it or not in this case was not the issue.

about the deposit, what i meant by taking it is that they asked for an extra £4000 from us. their extended mortage terms dropped our monthly payment by £100, so our saving of £100 per month is nulled by the fact they asked for 40 months worth of what our terms has decreased by.

the point of this post was to warn people that the HSBC mortgage isnt quite what you get on the tin, as we had a very bad experience from what they were offering and what we actually got.

You do know that you can overpay by up to twenty percent on a monthly basis if you are taking a fixed rate and an unlimited amount if it's a tracker product you are taking? If you can afford more than the bank think you can then go ahead and pay the extra hundred, thus reducing both the term of the mortgage and the overall interest paid. This at least gives you the option of dropping back to the standard payment in future if money is tighter at any stage.

Things can go wrong for people financially very quickly. While I'm sorry that you have had issues with the service that has been provided I am struggling to find fault with the credit underwriting principals that seem to have been applied in this case

TEDDYRUKSPIN

didnof wrote: »

you're completely missing the point of what my post is about, their affordability model clearly showed we could afford the place and our lsaraies combined aren't that far away from the actual value of the house - being able to afford it or not in this case was not the issue.

about the deposit, what i meant by taking it is that they asked for an extra £4000 from us. their extended mortage terms dropped our monthly payment by £100, so our saving of £100 per month is nulled by the fact they asked for 40 months worth of what our terms has decreased by.

the point of this post was to warn people that the HSBC mortgage isnt quite what you get on the tin, as we had a very bad experience from what they were offering and what we actually got.

Erm............ I actually believe that the mortgage was NOT affordable. HSBC central underwriting team are one of the toughest in the business. Due to this, their risk model has been much better than other lenders.

If they have told you to put down more deposit and stretch the mortgage longer, it means the previous mortgage application was clearly over their affordability calculation.

Besides..............if you don't like it, just go to another lender.

didnof

sorry guys but i'm obviously not making myself clear... our yearly salary is almost the same as the value of the house. if our combined salart was £20K then it would be almost a fifth, but when you practically earn what the value of the house is per year how can you say that the underwriters were right???

i notice one of you works for HSBC, i can only the other poster does too, becasue no company or person in their right mind can say that we could not afford the house.

Margin_Walker

If you can pay your magic number of £600 a month through overpayments I really don't see what the problem is.

didnof

the problem is that they rejected us in the first place because they werent making enough money out of us.

opinions4u

didnof wrote: »

sorry guys but i'm obviously not making myself clear... our yearly salary is almost the same as the value of the house. if our combined salart was £20K then it would be almost a fifth, but when you practically earn what the value of the house is per year how can you say that the underwriters were right???

A good underwriter would ask themselves a couple of key questions:

Why, if the applicants have such a large income, would they have such a small deposit?

Why, given the applicants' apparently large income, would they want to buy such a cheap house?

Now I don't know your full circumstances, what other commitments you have, what other properties you have, what the survey report said etc.

But I would be thinking "is this a buy to let mortgage or an investment mortgage that I'm about to sign off?".

A lender offering the best rates in the market doesn't need that sort of business and could, quite reasonably, be working on an "if in doubt, kick it out" policy.

didnof

we bought this house as there is a lot of potential and is unvalued, it was bought 2 years ago for £130K, we want to sell it in 3 years and make our final move with the profit and put that towards a deposit. we have been in new positions for around a year so we do not have great savings... nothng out of the ordinary i would imagine.

DelBoyPhil

_Andy_ wrote: »

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.

they kinda did this to us. but i overpay what i wanted to.