Chances of HSBC Mortgage being approved?

techguy81

I have a Mortgage Certificate (decision in principle) from HSBC and have just had an offer accepted on a house. The next stage is to hopefully have the mortgage approved, but there is almost a two week wait before I can see the HSBC mortgage manager.

In the meantime I have been doing some research and I keep reading that HSBC are notorious for turning applicants down at the mortgage approval stage. I read a horror statistic somewhere that 81% of all HSBC mortgage applications fail. Some people are even saying HSBC's Mortgage Certificates carry little weight and are possibly even a waste of time.

Should I be worried about this?

Dave_Ham

Impossible to say;

The chances of being declined are increased based upon:

How high your loan to value is
Type of income and employment
Financial commitments and importantly consistency of paying on time
Information registered on your Experian and Equifax credit files

That is a poor show from HSBC, that you are trying to give them your business and they cannot see you for 2 weeks...

Best of luck

System

I would say they are ultra conservative to the point of being picky

Someone I work with had their mortgage with then turned down because of one late payment on their mobile phone!

Ultimately they have great interest rates (even on a 10% deposit) so can be as choosey as they like

Good luck - let us know how you get on

Bluemeanie_2

I got approved for a remortgage in April 2011 with no problems at all. I found out afterwards they were ultra picky.
I did want a 90% LTV. However I only wanted to borrow £82000 and my income is £30,011 so it was less than 3 times my salary.
Mortgage is my only debt, so affordability was good, and I have never defaulted/missed a payment in my life.

Best of luck.

Thrugelmir

techguy81 wrote: »

I read a horror statistic somewhere that 81% of all HSBC mortgage applications fail.

Given they've had some of the best rates in the market for a number of years hardly surprising.

Considering the problems of other UK retail banks. Shouldn't have gone unnoticed that HSBC were barely affected. Perhaps down to there conservative personal lending policy and Asian roots.

Your concern should be whether you personally meet their lending criteria. As many unfortunately don't.

System

Scottish roots actually Thugelmir! They were set up to finance trade to the middle east.

You're quite correct though in that being conservative in the boom times have left them in a good position.