Shocking advice from HSBC

Pauleb80

My mortgage is with HSBC. I’m struggling to make the monthly repayments (and have been for a number of months now). I’m terrified of the consequences of missing a payment and fortunately I have not done so yet. I have spoken to HSBC on a number of occasions explaining my financial difficulties, explaining how I really don’t want to default and asked if there’s anything they can do to assist during this difficult period (reduced payments, change to interest only etc)………….to my amazement the response I keep getting back is “until you default on a payment there is nothing we can do to help you.” “miss your next payment and then we’ll be able to discuss options with you” etc etc.

I’m absolutely terrified of defaulting on a mortgage because not only will they likely hit me with lots of charges etc but I presume it will have a significant impact on my credit rating for years to come.

Has anyone else had similar problems with this, or any other, bank? It just doesn’t seem right to me that they have a customer who is doing everything they can to be upfront with them and try to keep their head above water yet they’re saying they can only look at assisting me if I default – which I’ve told them time and again I really don’t want to do and I can’t believe their advice to customers is this is what you must do if you want our help.

LeeSouthEast

To be honest, all the time you struggle to keep up repayments by any means (robbing peter to pay paul, borrowing from family, going without food etc), they simply won't care. The only time they will sit up and listen is when you no longer pay them. THEN they become interested.

Sad, but it's the way it is.

Have you considered posting on the Debt-Free Wannabe forum? Post your Statement of Affairs (see one of the stickies at the top) and we'll help you find money in your budget.

Thrugelmir

Pauleb80 wrote: »

My mortgage is with HSBC. I’m struggling to make the monthly repayments (and have been for a number of months now). I’m terrified of the consequences of missing a payment and fortunately I have not done so yet. I have spoken to HSBC on a number of occasions explaining my financial difficulties, explaining how I really don’t want to default and asked if there’s anything they can do to assist during this difficult period (reduced payments, change to interest only etc)………….to my amazement the response I keep getting back is “until you default on a payment there is nothing we can do to help you.” “miss your next payment and then we’ll be able to discuss options with you” etc etc.

I’m absolutely terrified of defaulting on a mortgage because not only will they likely hit me with lots of charges etc but I presume it will have a significant impact on my credit rating for years to come.

Has anyone else had similar problems with this, or any other, bank? It just doesn’t seem right to me that they have a customer who is doing everything they can to be upfront with them and try to keep their head above water yet they’re saying they can only look at assisting me if I default – which I’ve told them time and again I really don’t want to do and I can’t believe their advice to customers is this is what you must do if you want our help.

I'm unsure what you expect them to do for you. HSBC are a bank not an advice centre.

JA1000

Thrugelmir wrote: »

I'm unsure what you expect them to do for you. HSBC are a bank not an advice centre.

Interest only has been asked for, the bank still get what they need and payments have been reduced.

Can we get some figures, current o/s mortgage rate etc so we can just show what an impact this has. At this time banks have got to stop worrying about 25 years time and help people NOW.

It would be nothing to send out a review letter advising that they are still on interest only after 6/12 months.

It's the same with credit cards, they wont listen until you default. It's just the way it is but very frustrating.

beecher2

Have they given a reason for not allowing authorised arrears or going interest only? Could be that the LTV is too high for them to agree? I agree that you should post a Statement of Affairs to see if you can get help with cutting costs. Is selling an option?

VIGILANT22

Thrugelmir wrote: »

I'm unsure what you expect them to do for you. HSBC are a bank not an advice centre.

Not quite true.... The Banking Code requires that a lender must be sympathetic and positive when considering cases involving financial hardship.

Thrugelmir

VIGILANT22 wrote: »

Not quite true.... The Banking Code requires that a lender must be sympathetic and positive when considering cases involving financial hardship.

But the borrower hasn't defaulted.

[Deleted User]

Thrugelmir wrote: »

But the borrower hasn't defaulted.

Seems a bit of a perverse situation for all sides! You would have thought that banks would prefer to speak to people before they miss payments, to save themselves money!

Cannon_Fodder

Potentially, if Banks are sympathetic before "serious" problems are demonstrated, every tom, !!!!!! and harriet will be converting to IO, then we'll have a "conversion-to-IO mis-selling" scandal...

New thread in 2012 - "I was allowed to convert to IO by my bank, when I could have kept paying my repayment mortgage. Now, I haven't cleared the capital and I have no repayment vehicle. They were too understanding and sympathetic, surely I can claim compensation?"

VIGILANT22

Thrugelmir wrote: »

But the borrower hasn't defaulted.

The FSA state "All mortgage lenders we regulate have to deal fairly with you if you have problems paying your mortgage."....

No where does it say a client has to go into default before they enter into a dialogue with them....Where and if possible they should be discussing payment holidays/interest only for a time etc.......Not just leaving them to sink.............

Thrugelmir

VIGILANT22 wrote: »

The FSA state "All mortgage lenders we regulate have to deal fairly with you if you have problems paying your mortgage."....

No where does it say a client has to go into default before they enter into a dialogue with them....Where and if possible they should be discussing payment holidays/interest only for a time etc.......Not just leaving them to sink.............

Default can be as little as a single missed payment.

I am not unsympathetic. However payment holidays and interest only are easy solutions, which may not address the real fundamental issues.

If people are sinking then they should seek help from the CAB.