HSBC Mortgage - AVOID AT ALL COSTS !!!

opinions4u

pixelina wrote: »

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.

Last time I heard HSBC did not accept applications from intermediaries.

So I would be gobsmacked if there are many who have a strong working knowledge of the HSBC affordability model.

Most mortgage advisers, independent or lender employed, will want to make sure that the case gets through to completion so that they earn their commission / bonus.

Dan_1976

HSBC do not take apps from brokers etc but over the years you pick bits up.

They are fairly good at underwriting but with all the lenders actually lending at the mo, they will be picking on applications and looking at worse cases etc.

Less competition at the mo so more clients to accept or decline.

real1314

didnof wrote: »

i know you are defending your profession, .

I haven't defended my profession at all. My profession has nothing to do with banking.

How does a bigger deposit help increase HSBCs profits?
I'd suggest it makes the lending more secure.

I'd also suggest that your story of £87k income and wanting to live in an £87k 4 bed house still doesn't stack up.
Exactly how secure is your job? How big is the company's turnover? How many employees does it have?

And where do you live where a 4 bed can be had for £87k?

Oh and one other thing, if you say you're going to save your income while living in this house, mightn't you be better investing in a few more houses like this one, as you believe the price will rise dramatically?

dlk

I forgot to mention this point in my previous post but you say the monthly repayment is affordable. Well HSBC might even agree that they are currently affordable but they will also take into account whether they will be affordable in the future. Due to interest rates being so low right now, in order to be extra cautious HSBC currently assess all mortgages based on an interest rate of 5.5% rather than the current 0.5% base rate so will only lend if you fit there criteria with the interest rate at that level.

gimmy

didnof wrote: »

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

No one owes you a mortgage so dont really know why you are so out raged that you have been declined? Any bank has an absolute right to pick and chose who they lend to. And when it comes to affordablity it is the bank who decides whether or not you can afford it or not.

I also notice that you declined any protection. Although you may earn enough that you say you can afford the mortgage now what happens if your circumstances change in future and you cannot? It is largley because other institutions have loaned money that perhaps they shouldnt have loaned that there is a problem.

HSBC happens to have one of the toughest lending criteria of any bank so it is difficult to get a loan with them. They are however arguably the strongest Bank in the world today and have never had to make use of a governemtn hand out. Coiincidence?


Whilst the customer service you received may have been lacking the underwirting decision should not be questioned.

• you say you can afford it, the bank disagrees - its their money to lend.
• you say it was declined becuase they werent making money out of you, well thats fair enough, what's in it for them - its their money to lend.
• you declined any protection for the money, would you lend someone £80K of your money unless you were 100% sure they could repay it come what may? Its a big risk.

The bottom line here is longer mortgage term = lower repayments = affordable to the customer = more interest for the bank = everyone wins.

I'm sorry but I really dont see what your problem is and self important, ill advised, negative comments like yours are part of the problem. If you're not happy with the deal just go to another lender.

Toni23

As a former mortgage underwriter myself ( not HSBC ), I can wholeheartedly agree with a good number of the posts made. Underwriters do not sit assessing applications based upon the level of profit that the case can make. What is important is affordability, previous credit track record and stability and sustainability of the applicants income. They will also look for feasibility points such as are applicants moving from more expensive property to a cheaper one, would this then suggest that there affordability struggles?

Whilst the OP may have thought that the mortgage was affordable, it clearly was not the case to HSBC. The lending policies of the past have to be forgotten, after all enough lenders have gone as a result of those policies and those that are still lending are having to justify each and every lending decision against stricter and tougher guidelines from the FSA.

I am sorry that the OP did not achieve his aim, but instead of sulking like a petulant child you need to see that the staff actually tried to help, they could simply have declined the case on affordability, instead they offered you the option of extending the term and increasing the deposit in order to fit their affordability model. I would doubt that there would be a huge difference in the level of interest as after all despite a longer term, there is also a smaller loan amount to consider.

There is no conspiracy of the banks, you accept the deal offered or go somewhere else. FSA guidelines are even considering taking the affordability models to include every small amount of expenditure such as cigarettes, alcohol and the like. Therefore what a customer thinks they can afford is irrelelant, it's what the bank can justify you can afford is important.

TEDDYRUKSPIN

A potential credit officer??????? Who knows!?

Toni23

OMG Teddy, I'm sure she sat not far away from me when I was at work!!:rotfl::rotfl::rotfl: