hsbc/ first direct mortgage criteria is ridiculous!!! low rates but no customers

foxyuk

i have a deposit of 185000 looking to borrow £135k max ltv is 40% or so ....

in the affordability they do not take into account a rental income i have, im in a sales job with commision but will only rate me on basic wage unless i have been with employer for 3 yrs and will look at commision over this period

combined household salary must exceed £50k or £30k for single person .

i called them last night as i went into bank of scotland halifax got a mortgage offer ""A pass "" for agreement in principle but there rates are not the greatest but they take everything into account

total mad they should be crying out for non risk customers like me

kingstreet

They can cherry pick and are actively doing so.

If you aren't the cherry they want, stick two fingers up and go elsewhere.

GMS

Exactly as kingstreet says. HSBC offer great rates and decline plenty of creditworthy applicants.

If a sports retailer advertised the latest Adidas trainers for £9.99 there would be a queue for miles. However when it was explained that the trainers are only available in size 6 there would be many unhappy customers leaving empty handed despite having followed the advert.

Welcome to HSBC Sports!!

Conrad

foxyuk wrote: »

total mad they should be crying out for non risk customers like me

They argue that the reason they came unscathed through the credit crunch (whereas Halifax is effectively a Bankcrupt co, rescued by Govt intervention), is that HSBC are particularly risk averse.

They do not take rental income as statistics demonstrate rental income is more likely to be interupted than earned income, and if interupted the void can run into years.

Secondly commision despite in your case being a regular long term feature is still none the less more risky than basic salary.

Loan to value is irrelevant as I keep on saying when it comes to sustainability and affordability. A lender cannot justify a loan on account of low loan to value because in the event of a repossession hearing the judge can throw it out if it was foundthe lender used low loan to value as justification for making the loan.

m00m00

the 30/50k minimum income seems to only apply to Interest Only mortgages

foxyuk

m00m00 wrote: »

the 30/50k minimum income seems to only apply to Interest Only mortgages

yes thats correct im looking at interest only or a capital/interest split... as it is a move for 3 years max theres no advantage in having a repayment. i intend to either pay off the mortgage or refurb then downsize within the period

even then they dont accept commision, rental income, equity in buy to let as a repayment vehicle....

Thrugelmir

foxyuk wrote: »

even then they dont accept commision, rental income, equity in buy to let as a repayment vehicle....

This is solid old fashioned banking. HSBC know they can lend the total amount they available for mortgages. So have no need to take excessive risk.

[Deleted User]

In a similar vein I was looking for a 30% mortgage on my own home from First Direct to buy a flat abroad. I have long running rental income, security by the bucket but they wouldn't look at me. Insultingly nor was there any sort of 'Sorry about that, dear Customer' offiered, rather an intimation that I had BAD RISK written all the way through me. I am a customer of many many solvent years. First Direct? First Disappontment I have had with them.