HSBC Mortgage - AVOID AT ALL COSTS !!!

rsykes2000

mrs_skint wrote: »

you are ONE patronising git. That's it - I'm off to another consumer forum for advice.

Who is the patronising one ?

sheddy7

didnof - I think you have to bare in mind that that particular discount Mortgage was by far and away the best deal on the market for FTBs with only a 10% deposit. I would imagine that they were flooded with applications which in turn would have meant much more stringent criteria would be applied. You say others are nit-picking over the details of your situation but that is exactly the kind of thing the HSBC underwriters would have done. I mean, the underwriters may have been 95% sure you could have kept up the payments but had another application from someone else they were 99% sure about.

At the end of the day HSBC are only going to accept so many borrowers for a particular mortgage product, especially one for FTB with 90% LTV. You will notice if you go to the HSBC site now that this Mortgage deal has long since been removed and it's fixed and tracker rates for 90% LTV mortgages have gone up as well.

Dan_1976

LOL not hearing what your wanted to hear?

Thats the good thing about this forum, you get honest opinions.

Wutang_2

mrs_skint wrote: »

you are ONE patronising git. That's it - I'm off to another consumer forum for advice.

Are there other 'consumer forums'?? What are they??

And do they say the things you want to hear rather than the truth?

I could do with a site like that as I am thinking of patenting a long-finger-stick, but I know on here its just going to get criticised...!!

Peace.

MrCarrot

I applied for a mortgage with HSBC - it looked like a fantastic deal and the monthly payments worked out to around £200 a month.

Application went through, and then they questioned why I had not been paid in a few months. I explained I run my own business and get paid "as and when". My personal account was in credit and my business account showed a very healthy, regularly increasing balance, and they had access to all this info.

Despite this they said that within a couple of weeks I would have to pay myself in the region of £20k - £30k in order to be eligable for the mortgage. Since the amount I wanted to borrow was only £50k I lol'd and went elsewhere :rotfl:

Needless to say their fantastic rate was discontinued a couple of weeks later.

Peelerfart

I have had a mortgage with HSBC for two years .

They have been,in relation to my previous lender, fantastic

Just my opinion for what it's worth.

didnof

i've skimmed through the replies and a couple of points spring to mind:

- the reason i didn't have much savings is due to the fact that i got married last summer.

- agree totally with what someone said about them getting a flood of applicants, this means they can pick and choose the profitable mortgages and not bother with the ones that dont earn them much.

- someone didn't get my point about going back to my old role, what i was trying to say wasthat even if my wife and i were in our old roles we could still have been comfortable with our previous salaries.

- finally one thing which i didn't mention but is another example of hsbc caring only for their profits.... when we came back with a counter offer of 15% deposit, we offered to increase our mortgage term to 15 years, our hsbc advisor insisted on 25 years, and then we were literally bartering over the length of contract like you would do in a sunday market! we settled on 19 years, and never once during the bartering which was done over the phone or afterwards did they consult their 'affordability model' .surely this just shows they wanted us to go for a longer mortage as this meants higher interest and more profit.

i know you are defending your profession, but the fact is they turned us down because we 'couldnt afford it' so they then take an extra £4000 out of our bank accounts, barter for longer terms while previously trying to sell us all sorts of high interest policies and insurance which we stated time and time again we werent interested in. thats me done on the subject as i know how i was treated and how they behaved.

dlk

HSBC work on a 60% affordability model. Along with other criteria there highest priority remit for agreeing a mortgage is when they add up you mortgage repayment any other regular payments such as loans, school fees, maintainance and an assumption based on there expectations of your bills (based on the property value). Once all of them are taken into account they would want to see the figure come to less than 60% of net earnings. If this wasnt the case at 13yrs they would tell you to increase the term. It really is as simple as that. NO CONSPIRACY!!!

dlk

Plus making you use £4000 to pay extra deposit is doing exactly the opposite of what you claim they are trying to do by reducing there earnings on your mortgage!!! Keeping £4k aside and saying that covers a certain number of repayments is irrelevant to an underwriter as the week after you buy the house you might be straight down to the sales with that £4000

pixelina

surely both independent and bank advisors have a good understanding of affordability. the difference is, independent mortgage advisors try to obtain you the lowest term you can afford (ie. lower interest to the bank). When you go to a bank however, speaking from my experience with several banks, they push a long term from the beginning and seem rather 'surprised' you try to get a lower term. 'why not go for a 28 year mortgage.., look how small your monthly payments would be ". That's before any underwriter looks at models.