Refused for mortgage unsure why

sarahbro

Our fixed deal is coming to end, we are currently with NRAM and want away asap.
We applied for a hsbc mortgage, everything appeared to be ok, the advisor said he shouldnt see any problems getting it agreed in principal, then would go on valuation, we are expecting to have 80-85% ltv.

We have a joint annual income of £55,000 and passed all the affordabilty checks, other than car finance (£10,000 between us both) and our current mortgage (£108,000) we have no debts and both got 'good' credit scores from experian, no defaults, no ccjs or anything like that. We have had a call from them today saying its been refused based on internal scores???
are we better off waiting for a few months before applying elsewhere? we have also fairly recently paid a large chunk off our mortgage and im not sure if this has been updated yet, will this make any difference

handytips

No try again now HSBC cherry pick their enquiries and as yours is quite high LTV then they obviously rejected you, there are some good products out there at 85%. Tip. Rate isnt everything, knowing lenders criteria's and quirks is. Contact a local broker they should be able to point you in the right direction if they are whole of market.

Thrugelmir

High LTV would have counted against you. Maybe worth spending a few months overpaying your current mortgage then reapplying.

kingstreet

TBH I'd even think about reapplying to HSBC after the month end and in the morning. The beginning of the month means new targets and the morning means less time to fill that day's "allocation."

We had a thread on here recently where someone used this technique successfully.

I wouldn't advise this if you have a history of exceeding your overdraft limit or bounced direct debits.

sarahbro

we applied for a product specific to our ltv, there seems to be quite a few for that level of ltv aswell, you would tjink if they didnt want to lend at the level they wouldnt have products for it

handytips

You have nothing to lose by trying elsewhere should you want to, the other point of consideration, if you have all your insurances with HSBC then you may be able to save quite a bit by shopping around for like for like policies.