BAnksters HSBC

ranjitnarula

Slightly long mail but really need help

I am a customer of HSBC (hopefully a good and profitable one) for the past 7 years. A few months back I decided to move my mortgage from my existing lender to HSBC and applied for the lifetime tracker mortgage (with the fee of £999). Whilst my application was being processed, I decided to change the product to the non fee option (though it had a higher rate of interest). I called their mortgage service centre and was told someone would get in touch with me regarding the change of product I had requested. I received no call from any of their representatives. The mortgage required a valuation of the property which went ahead through a 3rd party

Without any intimation to me, the bank went ahead and withdrew the fees of £999 from my account on 23rd Nov 2011. My calls to change the product were ignored and no call back was received despite various reminders to their call centre. Surprisingly on 28th November 2011 I received a letter from HSBC which clearly states that the valuation of my property against the mortgage was acceptable and HSBC were happy to go ahead with my mortgage. Clearly the fees should have been taken after the valuation of the property was completed whereas the bank took this from my account well before the letter was sent. My question to is: What would have happended if the property valuation was not sufficient to cover the mortgage? Would the bank have taken the fees and told me that they would not lend me the money?

The bank insists that the fees was payable to 'book' the deal and hence are refusing to refund the amount or take any notice of the point that the valuation was sent after the fees was taken from my account

I have raised this to the Financial Ombudsman. Does any one have a view of my chanves to win against a giant like HSBC?

Wh05apk

Was the fee a booking fee, or a product fee? did you have the option to add to the mortgage, or pay up front?

If a booking fee, then yes, it is normally taken on application, if a product fee, I always recommend adding to the mortgage to avoid situations like this.

ranjitnarula

I had the option to add it to my mortgage. Not sure what that makes it

Thrugelmir

How long did you leave between making the application and changing your mind?

_Andy_

ranjitnarula wrote: »

Slightly long mail but really need help

I am a customer of HSBC (hopefully a good and profitable one) for the past 7 years. A few months back I decided to move my mortgage from my existing lender to HSBC and applied for the lifetime tracker mortgage (with the fee of £999). Whilst my application was being processed, I decided to change the product to the non fee option (though it had a higher rate of interest). I called their mortgage service centre and was told someone would get in touch with me regarding the change of product I had requested. I received no call from any of their representatives. The mortgage required a valuation of the property which went ahead through a 3rd party

Without any intimation to me, the bank went ahead and withdrew the fees of £999 from my account on 23rd Nov 2011. My calls to change the product were ignored and no call back was received despite various reminders to their call centre. Surprisingly on 28th November 2011 I received a letter from HSBC which clearly states that the valuation of my property against the mortgage was acceptable and HSBC were happy to go ahead with my mortgage. Clearly the fees should have been taken after the valuation of the property was completed whereas the bank took this from my account well before the letter was sent. My question to is: What would have happended if the property valuation was not sufficient to cover the mortgage? Would the bank have taken the fees and told me that they would not lend me the money?

The bank insists that the fees was payable to 'book' the deal and hence are refusing to refund the amount or take any notice of the point that the valuation was sent after the fees was taken from my account

I have raised this to the Financial Ombudsman. Does any one have a view of my chanves to win against a giant like HSBC?

Ombudsman won't touch it until you've exhausted the complaints process with HSBC.

betmunch

You have spent nearly a grand on something you dont know what it is.

Find out what the fee was for then we can be a bit more helpful.

It will say on the KFi and the offer letter you should have been sent

Wh05apk

betmunch wrote: »

You have spent nearly a grand on something you dont know what it is.

Find out what the fee was for then we can be a bit more helpful.

It will say on the KFi and the offer letter you should have been sent

Obviously HSBC did a good job of explaining the KFI with all fees etc thoroughly explained

pinkteapot

I suspect it was a booking fee. We have the same mortgage product - took it out last year - and the fee is payable on application. Could have been worse - if they had turned you down for the mortgage it's non-refundable!

As previously asked, how long was it from your application to you asking to apply for the non-fee version instead? If the application had already begun processing, it was probably too late to change your mind. If it was only a few days though you could keep trying to pursue it with them. (Not sure if mortgages have a cooling off period - someone on here should be able to advise)

Edit, found this in less than a minute:
https://mortgages.hsbc.co.uk/mortgage-fees

They don't do any product fees, only booking fees (might as well be called "application fee"). An example mortgage product is here:
https://mortgages.hsbc.co.uk/product/A008000593008000594008000595-2-year-discount-special

The fee is specifically called a "booking fee".

ranjitnarula

approx 10 days

ranjitnarula

_Andy_ wrote: »

Ombudsman won't touch it until you've exhausted the complaints process with HSBC.

Have sent it to the Ombudsman so let me see what they come back with

_Andy_

ranjitnarula wrote: »

Have sent it to the Ombudsman so let me see what they come back with

They won't 'come back' with anything unless you have exhausted the HSBC complaints process (which it sounds like you haven't)