HSBC - encouraging debt?

cifpower

I have a current account with a cash card but I was looking for one with a debit card attached to it. As I am disabled and cannot work it has been hard to find a bank who will offer me a "full" account.

I applied with the HSBC over the telephone and was told that, as I was not on the electoral roll, I would have to take my ID into a local branch. The products they could offer me were:

-a full current account with a £300 O/D
-a credit card with £1500 limit

I was a bit taken aback by the limits offered but I was grateful of the credit card. I currently have £490 on a card with an APR of 12.9% so I can transfer that over for a 2% BT fee and have 0% until January 2008.

I went into the branch today and signed everything. She also asked me if I was looking to buy a house and I said no. She said I had been pre-approved for a mortgage valued at £41,000. I was stunned! How could they offer that to me when I am unemployed and receive £6500 a year!

BASFORDLAD

Just thier internal scoring systems.

sonee2405

hi, i agree with you. hsbc offer alot whilst other banks either turn customers on incapacity/dla away or watch their accounts like a hawk for a few years and then offer a credit card facility. i am with hsbc and i recieve about the same, they offered me a loan and a mortgage aswell. mayb they appreciate our custom so lets enjoy it while we can.

Phoenix79_2

Sell sell sell! Thats all HSBC want to do now. The counter staff have it drummed into them that they must look for the 'selling angle' at every opportunity! I feel sorry for the staff as i know they hate doing it.

Look out for the HSBC 'megastores' coming to a city near you soon.....with a built in coffee shop etc.

_Andy_

Don't pay much/any attention to the 'pre-approved' mortgage figure. It means very little - it's just the system seeing how much income you have and applying a multiple to it. If you had ended up speaking to someone who dealt with mortgages it would have been declined.

cifpower

_Andy_ wrote:

Don't pay much/any attention to the 'pre-approved' mortgage figure. It means very little - it's just the system seeing how much income you have and applying a multiple to it. If you had ended up speaking to someone who dealt with mortgages it would have been declined.

For the mortgage, thats a multiple of 6.3. They wouldn't have offered that much if I wasn't able to pay it back. Would they?

debster369

It's only an agreement in principle. If you decided to take it up you would then have to go through further checks and credit scoring applications. It would be assessed on affordability monthly so would depend on factors such as age (i.e could you have it over 30 years or just 10).