MSE News: HSBC launches sub-4% mortgage for 10% deposits

ExpatWelshGirl

What can I say? Thank you for confirming that we're not alone.

HAMISH_MCTAVISH

The vast majority of applications for 90% mortgages get refused. Even for people with good credit.

The banks are rationing mortgages, and must shrink the pool of borrowers to meet the pool of available funding.

Wh05apk

HSBC are very difficult to get through at 70/80% at 90% I suspect it's really just a publicity stunt with probably about 10% of applications succesful, the other 90% having had a needless credit search and wasted days hoping to get the unachievable.

Powlo

We've just been approved for this 90% LTV deal with HSBC, so it does happen. We've borrowed just under 2x our combined salaries so I guess that's fairly low, and we have no debt other than student loans. :beer:

DannyboyMidlands

ExpatWelshGirl wrote: »

HSBC turned us down for a mortgage yesterday. We have 10% deposit. We are both public sector employees, my partner has survived restructure and is secure and I am in excluded from redundancy post. HCBC mortgage 'adviser' told us that he could see no problem with our application, but we were turned down. What do we do now?! He ended his letter 'enjoy your new home'. How the devil do I do that?! Do we risk going for another mortgage and get more footprints? We were turned down by Skipton. But if our own bank - we do all our banking with HSBC apart from our little bit of savings - won't give us a mortgage how will that look? Distressed beyond belief. Really shouldn't have bothered going to university, I have a well-paid job, but it's got me precisely nowhere.

If you have a well paid job then a 10% deposit is a pretty crap effort. Keep saving and you'll get what you want and at a better rate.

Powlo

DannyboyMidlands wrote: »

If you have a well paid job then a 10% deposit is a pretty crap effort. Keep saving and you'll get what you want and at a better rate.

That's a bit of a sweeping statement! If you're renting and paying someone else's mortgage off then that's not necessarily the best way...

thomasdown

Me and my fiancee got accepted on a 90% mortgage with HSBC 4 months ago! Couldn't fault them we earn £62k between us and got a mortgage on a £214,000 house so just over 3x earnings. So they do lend to people with only 10% deposits!!!

Thrugelmir

thomasdown wrote: »

so just over 3x earnings.

That makes a considerable difference coupled with the fact that your household income is above the national average.

Many people don't meet both these criteria.

thomasdown

Thrugelmir wrote: »

That makes a considerable difference coupled with the fact that your household income is above the national average.

Many people don't meet both these criteria.

True very true. I was just saying that they do lend 90% mortgages, the way its been stated on this post is that they don't lend out 90% mortgages. We had to save hard for 3 years though to get what we wanted, my opinion is you have to make sacrifices to get what you want in life.

s_glover

Not quite the same scenario but we've just had a 85% mortgage approved by HSBC for 184,000 (just under 3.5 x combined salaries). After all I had heard on here I was skeptical about whether we would pass their apparently strict cirteria but we did. We've both got pretty clean credit histories and have recently paid off all but a small amount of debt but we do have overdrafts.