HSBC - moving goalposts

The_Baggies

First post on here so please be gentle.

I am a shareholder and director of a small/medium sized business and wanted to make people aware that HSBC have just changed thier policy regarding a company's facility.

We currently have a joint and several guarrantee to cover any funding requirements, this is in the form of Personal Guarratees.

NOT ANYMORE

We have today been informed that it is new HSBC policy that ANY borrowing over £30k must be covered by a tangible asset - property! :mad:

We are a successful business who are achieving a growth of 24% this year and our balance sheet is good and facilities are low and that makes absolutely no difference at all.

Anyway if your review is close please be aware.

I have three other banks coming in next week and will definately be moving the business elsewhere, we have been with HSBC and HSBC Invoice Finance for 11 years.

nervousmother

To be honest I think more and more banks will go down this route.

Trollfever

Another HSBC thread can be found here:

HSBC Mortgage - AVOID AT ALL COSTS !!!

http://forums.moneysavingexpert.com/showthread.html?t=2113743



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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.

Toni23

Sorry everyone. I have attached to the wrong HSBC post

sizzler

The_Baggies wrote: »

First post on here so please be gentle.

I am a shareholder and director of a small/medium sized business and wanted to make people aware that HSBC have just changed thier policy regarding a company's facility.

We currently have a joint and several guarrantee to cover any funding requirements, this is in the form of Personal Guarratees.

NOT ANYMORE

We have today been informed that it is new HSBC policy that ANY borrowing over £30k must be covered by a tangible asset - property! :mad:

We are a successful business who are achieving a growth of 24% this year and our balance sheet is good and facilities are low and that makes absolutely no difference at all.

Anyway if your review is close please be aware.

I have three other banks coming in next week and will definately be moving the business elsewhere, we have been with HSBC and HSBC Invoice Finance for 11 years.

Hi there, I was self employed and had two employees for twenty two years, during which i banked with Midland which became HSBC. Had good times till about six years ago when hit some !!!!. Sold reasonable house, but ex council flat and was then working by myself. paid HSBC back as much as i could and tried to survie till october this year, barely getting by. I applied for IVA in Last summer but after all these years HSBC would not accept it. Worst was they were smallest of my debts out of three. they wanted my parents who are retired and just get by to use thier house as gaurantee for £8000. Hence Iam now BR.

Once I told them I was BR they kept ringing me saying we can help you. A bit too late. rotten B********. Even now they still call saying my personal acount can be unfrozen as I was a Vaued customer???????????

Regards sizzler:eek::eek::eek::eek: