HSBC - increase chances of approval

billchecker1

I am now hoping to apply for a HSBC mortgage sometime in the next 12 months.

Have banked with Lloyds TSB for 16 years with my credit report reflecting this. However the rates at HSBC seem better. A customer service assistant in branch told me that it would seem better if I banked with them as they could see some history of my banking.

My question is if it is worth changing to them. I don't really want to move my Lloyds account. It is a vantage one with 4% interest and my history with them is good.

Would it be a suitable alternative to open a savings account with them and pay in a regular amount? That way they can see some history without me having to change my main bank.

Thanks.

sebtomato

My own experience is that it does not really matter who you bank with.

I had all my accounts with Barclays for 10 years, and they were reluctant to give me a mortgage (or rather an approval in principles) despite having the track record of my earnings, spending and savings. First Direct gave me the mortgage without issues, and just requested copies of the last bank statements and payslips (and I then moved all my accounts to them, as Barclays were useless anyway, and the FD mortgage was an offset mortgage).

Therefore, I think it will make no difference if you have accounts with HSBC or not, and your current bank will not necessarily be granting a mortgage quicker.

_Andy_

Savings account will make no difference whatsoever.

16hm

Thanks.

Wonder why the member of staff said that then.

kingstreet

16hm wrote: »

Thanks.

Wonder why the member of staff said that then.

Really?

Is that a genuine question?

Can I suggest the Bank's employee may be targeted with account openings and will say what he/she thinks will help him/her achieve that?

System

I think HSBC have an internal behavour score which they use to approve lending - so if you have a good history with them and they can see where your money is going it can save all the hassle with payslips/statements etc

rb10

billchecker1 wrote: »

I am now hoping to apply for a HSBC mortgage sometime in the next 12 months.

Have banked with Lloyds TSB for 16 years with my credit report reflecting this. However the rates at HSBC seem better.

Mortgage rates change frequently - so just because HSBC are the most competitive for you at the moment doesn't mean they will be by the time you come to apply.

billchecker1 wrote: »

A customer service assistant in branch told me that it would seem better if I banked with them as they could see some history of my banking.

My question is if it is worth changing to them. I don't really want to move my Lloyds account. It is a vantage one with 4% interest and my history with them is good.

They are just trying to sell you a bank account, to get their bonus.

If/when you come to apply to HSBC, they will be able to see how well (or otherwise) you have managed the Lloyds TSB account.

In fact, having a credit search now (for the current account application) would be more likely to harm your chances of a successful mortgage application, depending on when exactly you come to apply for a mortgage.

billchecker1 wrote: »

Would it be a suitable alternative to open a savings account with them and pay in a regular amount? That way they can see some history without me having to change my main bank.

This would be unlikely to help your application at all.

Thrugelmir

Banking with a potential lender may be the deciding factor as to whether your application is accepted or not going forward. This is merely a return to the ways banks use to operate. Obviously banking with a lender enables a far better credit profile to be obtained.

No reason why HSBS could not not be your main bank while Lloyds holds your short term savings.

_Andy_

PinkandPurpleGlitter wrote: »

I think HSBC have an internal behavour score which they use to approve lending - so if you have a good history with them and they can see where your money is going it can save all the hassle with payslips/statements etc

1) savings accounts will have no bearing on this
2) current account or not they will still need payslips

UnionGirl

I got an HSBC mortgage in August 2008 which I still have and I did not have a current account with them then.

I did get a current account with them January this year though as they were paying 6% (upto a certain limit can't remember what) but at least £2k.

They also had a Regular Savers Account which lasts a year from opening, you have to pay in monthly a min of £25, max £250 and can't withdraw within that year.

So, if you're only worried about your 4% on your Lloyds TSB account, check out HSBC - they do usually have January promotions.

Thrugelmir

UnionGirl wrote: »

I got an HSBC mortgage in August 2008 which I still have and I did not have a current account with them then.

The financial world turned upside down in October 2008.

Since then the game has changed and more than likely will continue to do so.