HSBC Mortgage Offer Process

31michaelgardens

I am extremely unnerved by a recent discussion I had with HSBC regarding a mortgage in principle application. I was rejected for additional funds despite easily qualifying using the mortgage calculator tool on the HSBC web site.

I currently have a 250K mortgage and require an aditional 100K for a new house valued at 700K (LTV50%). My basic salary is 130K not including my annual bonus which is likely to be 20%. I have 3 credit cards and pay off two in full every month. The third card is an interest free card which I have loaded to the £5K limit and will pay on in full once the promotion period expires. I have never missed a payment for mortgage or any other debt and have no CCJ's or other financial problems.

Can anyone suggest what may be preventing the approval in principle?

Paul

harvey115

HSBC is a very picky lender, I would say if you are having problems in AIP stage you should not go further with them. This is to avoid any future disappointments.

I would say use the comparison sites to check for good deals other then HSBC and also check with a broker. Select the one you like and go for it.

31michaelgardens

harvey115 wrote: »

HSBC is a very picky lender, I would say if you are having problems in AIP stage you should not go further with them. This is to avoid any future disappointments.

I would say use the comparison sites to check for good deals other then HSBC and also check with a broker. Select the one you like and go for it.

Thanks for the quick reply. My current mortgage with HSBC is a lifetime base rate tracker at 0.38% above BOE rate. I was actually wondering if they are saying no just to get me to move away from this product.

Paul.

harvey115

That is a very good deal indeed. Almost no interest if you look at it closely

The problem is HSBC underwriting is not visible to the best of people/brokers/customers. So it is very hard to tell.

If I am failing at the AIP level with HSBC's like I would not be counting on full application with them either.

31michaelgardens

Do you know if they are obligated to give me a reason for AIP and formal rejection?

Paul.

harvey115

No Lender is obliged to give you detailed reasoning on decline. I think if you check with them they might just say you failed our credit check criteria.

What you should do is check you Experian and Equifax reports. Start your search again excluding HSBC this time.

Thrugelmir

31michaelgardens wrote: »

Thanks for the quick reply. My current mortgage with HSBC is a lifetime base rate tracker at 0.38% above BOE rate. I was actually wondering if they are saying no just to get me to move away from this product.

Paul.

Highly possible.

So the alternative is stay put and build your savings.