HSBC mortgage criteria

mamagrowl

We live on one income of about 40,000 and currently have the worlds worst mortgage [6.4% fixed with Halifax]. We have no debt other than our £81,000 mortgage. The HSBC have said that because we have three children and I am a homemaker/ fourth dependant we are too higher risk!!! The house is worth 135000 and we only want 81000 !!!! I am sooo cross. We are trying to pay the mortgage off and provide a life for our children. We take great care with our money and have great credit ratings. Has anyone else come across HSBC anti - family selection to mortgages? growl growl I even offered to pay a 50% deposit. :mad:

They will lend us a maximum of £33000!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

GMS

A single income with 4 financial dependants will always result in low income multiples.

This is not an anti-family stance from HSBC, it is what they would call responsible lending. Their criteria is very strict so you may need to look elsewhere.

I hve had a case this week. Couple both working, 40k plus income, 2 children. 1 lender said £66,000 another said £210,000.

The 66k one took child care as a commitment, the 210k one didnt.

Every lender is different. This is where it is vital to get the correct lender for the circumstances, not just the cheapest rate one.

mamagrowl

Thanks for responding!!
I still feel it is quite anti-family. Responsible lending surely means looking at the bigger picture - where is the risk in an incredibly stable and small family home if we pay for insurance to cover the debt anyway... seems very non-transparent. An income multiple of less than one is surely insane. We have permanent work, insurances, no debt but 3 lovely children - and savings plans to go with each!! It seems this countrys finances are going crazy!
cheers

GMS

You are being classed as a dependant too, so effectively 4 children.

Income multiples are a blunt tool to work out borrowing.

Seems harsh for less than 1 x income for you but your outgoings are restricing you based on the assumptions made by a lender in supporting a family of 5.

A couple with no children may get 5 x income. Couple with no children but some debts may get 3.5 x.

If you feel you can afford the repayments of more than HSBC then look for another lender. Variations in amonuts offered can be huge.

m_13

My wife doesn't work and I do so HSBC (correctly) treated her as my dependent on our mortgage application. It reduced the salary multiple offered.

cjewitt

I am in the process of getting an HSBC Special Tracker (BR+1.79%). To get the amount I wanted to borrow on interest only, I had to say I needed the money for 12 years, not 4 as I actually do; and I had to apply in my sole name rather than jointly with my wife (not currently earning).

How can having a longer loan duration be a lower risk?

How can having one borrower be a lower risk than two?

I only twigged after I played with the online assessment tool on the site.

Thrugelmir

cjewitt wrote: »

How can having one borrower be a lower risk than two?

Does your wife intend living elsewhere ?

GMS

Did you declare your wife on the application?

Longer term probably due to them assessing interest only on a repayment basis. This is done to ensure interest only is not being used to bypass affordability rejections.

Conrad

Broker clients never have more than 1 child, wink wink


What a funny counrty we inhabit.

You can be like one of our tennats here, totaly irresponsible having 48 hour playstation parties, rent paid, sickness benefit recieved (for apparant panick attacks even though they go on 2 week Ibiza clubbing hols, lol), 3 kids, no work, all play and have plenty to live on despite never having saved or bothered planning.

Or you can follow all the rules, be responsible, PROOVE you can pay a mortgage at 6.14%, only to be declined for one at half the rate, whilst onlooking compliance policemen applaud lenders for such prudence.

Funny funny world

cjewitt

Thrugelmir wrote: »

Does your wife intend living elsewhere ?

I hope not!!!

Superstars2011

Hello, not sure if this is the right place to ask.

Right, me and my partner are looking to buy our first house.

Value £170,000
We have 10% deposit
Combined income is over £49,000
I have a v.poor credit rating, with a few defaults. However she has a very good one.
We both have very secure jobs

We have had an decision in principal accepted by hsbc. The mortgage advisor there also ran a credit search and this passed too. He has now submitted the application to be reviewed by the under writters. We made the advisor aware of the defaults too. They were within the last 6 years


What is there criteria? What do they see? I'm worried that it may fail.

Any advice will be much appreciated.