Loan affordability

scritch

Can I ask some advice (hope this is the right place to do it). I bank with HSBC and have done for half of my life. All my finances are with them (except for £40 on a store card). Last June I got a loan from them to pay for my wedding to my then long term partner. Last week I contacted them to see whether I could get a further loan to consolidate the loan from last year and my credit card (also with them). They looked at the new loan (which would have been £30 per month cheaper than I pay them for the current loan & minimum credit card payment combined and over only a further 6 months). They decided that I could not afford this loan because they would not take my husband's income which goes into my bank into account when calculating affordibility (which I fully understand) but also as all the bills come out of my bank account they would not reduce my financial contribution to the bills even though some of the bills are in my husband's name.

The effect of this was that my income was shown as one third of the income coming into the house but that I was responsible for 100% of the bills. Therefore I could not afford to pay my bills let alone a loan and the application was rejected as it was unaffordable. They suggested that my husband could take his money and leave me and I would still have to pay all the bills!! (They have since apologised for this).

My question is - if HSBC say I cannot afford a loan at £30 less than the credit card and loan I have with them at the moment did they missell me the loan last year when my income was slightly less than it is this year and the account circumstances (paying all bills and hubby to be's money coming into my account) was the same? Your comments/views would be most welcome.

talana

scritch wrote: »

My question is - if HSBC say I cannot afford a loan at £30 less than the credit card and loan I have with them at the moment did they missell me the loan last year when my income was slightly less than it is this year and the account circumstances (paying all bills and hubby to be's money coming into my account) was the same? Your comments/views would be most welcome.

So maybe they've simply changed their internal lending criteria since giving you the CC and existing loan.
It happens, they're entitled to do so.
Doesn't mean missold.

dunstonh

Lending criteria is not constant. It is fluid depending on a range of things.

talana

You could also act on some of their comments to improve your chances another time.
Why are all the household bills coming out of your account? Even the ones not in your name?
One option is to have a joint household account that pays all the bills that you both pay in to.
Another option is just switch those in husband's name to his account.

roonaldo

"mis-sold" the most over used word on this forum.

_Andy_

roonaldo wrote: »

"mis-sold" the most over used word on this forum.

Followed closely by 'rip off' and 'scam' (never is any though)