HSBC Slash Rates But Already Applied - Poll

Brinkster

Hi,

I created another thread about this but wanted a poll to get a feel for opinion before I rant at HSBC.

So, we applied for a mortgage over the phone for a 5 year fix standard, 80% LTV, which was advertised at a rate of 4.19%. We got the decision in principle on the phone and they sent the full application form for us to check, complete and return. We posted the form to them on the day they slashed their rates by 0.2%, so the product we were applying for is now listed as 3.99%.

Due to not providing proof of ID in the application (having banked with them for nearly 20 years it didn't seem applicable), they wrote back requesting it, including the following warning:

"Please note that as we are awaiting further details to complete your application, the interest rate for which you are applying may be withdrawn at any time without prior notice and may no longer be available at the point when we approve your application. If the interest rate is withdrawn, we will discuss any new rates with you before final approval of your application".

Also, their website states:

How can I secure the interest rate?

We will reserve the interest rate once you have paid the booking fee (if applicable) and an Underwriter has approved your mortgage application.


We have done the ID in branch but they have still not taken the booking fee yet. I've rung a few times and the call centre people are less than helpful and don't really seem to understand that I'd not be happy that they want to reserve the 4.19% rate for me, and/or they can't be specific until our application gets assigned to a "credit control officer", which we haven't got yet.

Are we being unreasonable to expect to get the 3.99% rate as at the point of approval (as seems to be the case if rates go up between application and approval)? Or should we expect to get the current rate?

Thing is, if they try to force us on 4.19%, I want to withdraw before they approve so that we can start again at 3.99% from the off. It may have wasted a week or 2 but it's still early days in the purchase.

_Andy_

There's hardly anything to 'rant' about is there? They've said when it gets to a credit control officer they'll let you know. So wait and see what happens.

Brinkster

_Andy_ wrote: »

There's hardly anything to 'rant' about is there? They've said when it gets to a credit control officer they'll let you know. So wait and see what happens.

True, but I'd like to be furnished with the great expertise on offer from this forum in advance of having that conversation with the credit control officer. That way, if I have to fight my corner, I have more chance of winning, and the prize is £1,320 over 5 years! :money:

Thrugelmir

Brinkster wrote: »

True, but I'd like to be furnished with the great expertise on offer from this forum in advance of having that conversation with the credit control officer.

Unlikely that'll you get the chance to speak directly.

As Andy said. "There's hardly anything to 'rant' about is there?"

Brinkster

Thrugelmir wrote: »

Unlikely that'll you get the chance to speak directly.

I was told that I would, when they call me.

Thrugelmir wrote: »

As Andy said. "There's hardly anything to 'rant' about is there?"

I can think of 1,320 things to rant about! This is a Money Saving site, after all.

Thrugelmir

Brinkster wrote: »

I can think of 1,320 things to rant about! This is a Money Saving site, after all.

Little point in pre-empting the response though and getting unnecessarily stressed.

Brinkster

Thrugelmir wrote: »

Little point in pre-empting the response though and getting unnecessarily stressed.

True, but hard not to, the whole thing is daunting and this has just added to it. :eek:

Brinkster

We now have a credit control officer, however they did not ring as promised (I rang them) and they still cannot say what rate we will get - apparently it is down to the underwriter and now they will give me a call about it. I'm not holding my breath.

If I were a sceptic, I might think they were dragging their heals until the booking fee is taken and the 4.19% rate is then booked. To change then would incur another fee.

johnk

I was in a similar position last year - I was actually a few more steps down the road than you as the application was already approved. The difference is that I applied through a branch mortgage consultant. She had a quick word with the underwriter and the application switched to new rate without any further paper work from me.

ijrwe

I submitted an application last week but, by chance, didn't pay the application fee which would secure me that rate. Today I went to pay it and noticed the mortgage I applied for was unavailable and had been replaced by one 0.15% cheaper. Naturally, I pointed that out when I rang up and the lady said that she'd change it over for me. I wasn't filled with confidence, though, that that will actually happen. I guess I'll have to wait and see next time I hear from them. But since she said she'd change it and on the day I actually paid for my application only the cheaper rate was available, I'm sure I could complain my way up until I got it. If necessary.

I'm sure that if the rate had gone up they'd be quick to switch you to that. I'd guess that you're safe, OP - but we'll both have to wait and see!

Brinkster

Ok, now I might have something to "rant" about then....

The booking fee came out yesterday. We rang again yesterday (4th or 5th attempt) but still they were unable to answer our query and we were again promised someone would ring back about it.

Anyway, today someone has finally rung back and basically the rate is at the point first application and has now been booked from the fee. We could be changed to the new rate if we paid a new booking fee. However, we would have been able to change to the new rate at no extra cost until the point the booking fee was taken. Given that I explained we tried to do so on at least 4 occasions and that nobody could help, they are going to investigate the issue as a complaint and possibly listen back over phone recordings (which should embarrass them as some of their mortgage staff sounded like they didn't even know all their rates had been cut!).

So, we are now at the mercy of someone's discretion in dealing with the complaint. I don't really like complaining to someone I'm applying for money from, for obvious reasons, but I do feel like this has been very badly handled and it is so annoying knowing that if we'd got through to someone half competent before yesterday, we'd have got the new rate with no problems. I'm hoping HSBC will see our side, after all we have banked with them for decades and the guy I spoke with today did seem to at least sound sympathetic.