Turned down for HSBC remortgage deal

makemesumdosh

i called HSBC to apply for the lifetime tracker as its fee free to move from my exsisting lender.
the rate is base + 1.89%.
After 30 minutes on phone i was told the computer has said we cannot offer you a mortgage. the guy i spoke to was very surprised as he said i more than met the critera.

i earn £20000- £22000 a year and wanted to borrow £64000 over 9 years with £44000 on interest only and £20000 on repayment with policies to cover the interest only. my house is worth £200000.

he said have i got any black marks against my name to which i said no. he suggested i do a credit check on myself so i signed up to Experian. My result was excellent and a score of 999. no negative marks against my name.

My problem is how can i get this mortgage deal as i cannot find anything better thats fee free, i rang HSBC and told them about my credit score but they said the system is run by computers sotry your local branch. i'm at work so cannot get to local branch.

any advice gratefully accepted.

stavros1981

I would highly advocate going in!

I would suggest you try and book some leave and meet. In my very limited (im a first time buyer) experiences with HSBC, i`ve found them to be very personable and the Mortgage manager has got to be better than a computer making the decision! Although the MM plugs his info into a computer he at least is there, in front of you, to talk to.

HSBC do use Experian so make sure you do double check the whole report not just the score.

Thrugelmir

makemesumdosh wrote: »

My problem is how can i get this mortgage deal as i cannot find anything better thats fee free,

Likewise HSBC may view the fact that you the amount you require and the mortgage term for 9 years below its lending limits (for profitability).

Deals are pitched with no fees so as to attract plenty of enquiries. Depending on the level of demand they can tweak whether they are interested in the business.

gizmo111

Have you other outstanding credit that may have affectd your affordability?

_Andy_

Given the short term of the mortgage I would wager this was declined on affordability.
By the way you credit 'score' is meaningless

lightspeed

additionally, having spoken to a HSBC MM (in branch), they will NOT be interested in a mortgage involving interest only.

_Andy_

lightspeed wrote: »

additionally, having spoken to a HSBC MM (in branch), they will NOT be interested in a mortgage involving interest only.

At the OP's LTV and with a repayment vehicle in place the interest only side of things won't be an issue.

kingstreet

Thrugelmir wrote: »

Likewise HSBC may view the fact that you the amount you require and the mortgage term for 9 years below its lending limits (for profitability).

Deals are pitched with no fees so as to attract plenty of enquiries. Depending on the level of demand they can tweak whether they are interested in the business.

I agree. It might have been more successful at a longer term. The deal's penalty-free so overpayments could be made at any time to reduce the term.