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HSBC Joint Mortgage Rejection - no reason given!
stigers007
Posts: 7 Forumite
Hi All
Hoping for some advice and guidance after we were flat rejected (not even passed to underwriters) by HSBC for our joint mortgage, despite the first meeting with HSBC going very well and being very positive.
My fiancee already has a £150k mortgage with HSBC which was to be ported across retaining the rate, and an additional £80k borrowed for the new house on a current product.
So in summary £230k to borrow vs £287.5k house with 20% deposit.
Our combined earnings are £105k and using the HSBC cost calculations it worked out that we had 53% disposable income so could comfortably meet the payments.
The HSBC mortgage guy couldn't/wouldn't give me a reason why it was rejected, he just said it could be a number of things, such as....
-Neither of us bank with them.
-We both have credit card balances - Combined £10k on 0% cards which we are paying off slowly using the 0% period.
- That I have a 3 current accounts where i move money around....I have an old account for my salary, i then have a play account which gets so much a month, and a bills account.
-That my current account was often overdrawn... it was but isn't now.
- I have a HP agreement.
None of these were said as the primary reason and he was being very vague.
I have downloaded both our credit reports and I am 825 and my fiancee is 880.
I did spot an error on my report my tesco card saying that it was paid late 4 mths ago, it wasn't and it was corrected at the time. I have spoken to tesco this eve and they agreed it shouldn't be there but will take a month before it's corrected.
Also 2 other odd things, my mortgage that was paid and redeemed over a month ago is still showing on my credit score, I did tell HSBC that i had sold my house and no longer had a mortgage. So if this came up on the searches could this freak them out? Surely they would just say!! and I could explain?
The other one was that my current account with Natwest wasn't showing up at all on my credit report.... not sure if it makes a difference.
Our main concerns are is if this counts as being rejected as we don't want it effecting future applications....
Please help any advice would be much appreciated.
Hoping for some advice and guidance after we were flat rejected (not even passed to underwriters) by HSBC for our joint mortgage, despite the first meeting with HSBC going very well and being very positive.
My fiancee already has a £150k mortgage with HSBC which was to be ported across retaining the rate, and an additional £80k borrowed for the new house on a current product.
So in summary £230k to borrow vs £287.5k house with 20% deposit.
Our combined earnings are £105k and using the HSBC cost calculations it worked out that we had 53% disposable income so could comfortably meet the payments.
The HSBC mortgage guy couldn't/wouldn't give me a reason why it was rejected, he just said it could be a number of things, such as....
-Neither of us bank with them.
-We both have credit card balances - Combined £10k on 0% cards which we are paying off slowly using the 0% period.
- That I have a 3 current accounts where i move money around....I have an old account for my salary, i then have a play account which gets so much a month, and a bills account.
-That my current account was often overdrawn... it was but isn't now.
- I have a HP agreement.
None of these were said as the primary reason and he was being very vague.
I have downloaded both our credit reports and I am 825 and my fiancee is 880.
I did spot an error on my report my tesco card saying that it was paid late 4 mths ago, it wasn't and it was corrected at the time. I have spoken to tesco this eve and they agreed it shouldn't be there but will take a month before it's corrected.
Also 2 other odd things, my mortgage that was paid and redeemed over a month ago is still showing on my credit score, I did tell HSBC that i had sold my house and no longer had a mortgage. So if this came up on the searches could this freak them out? Surely they would just say!! and I could explain?
The other one was that my current account with Natwest wasn't showing up at all on my credit report.... not sure if it makes a difference.
Our main concerns are is if this counts as being rejected as we don't want it effecting future applications....
Please help any advice would be much appreciated.
0
Comments
-
What rate are you trying to port?
Payoff the debt. £10k is material to a mortgage application.0 -
stigers007 wrote: »
My fiancee already has a £150k mortgage with HSBC which was to be ported across retaining the rate, and an additional £80k borrowed for the new house on a current product.
This I would say could have been your downfall?
Think of it from the banks point of view, sounds like you want 2/3 of the debt on a rate where the bank probably will be losing?
Don't take it to heart with £50k spare a year you should most likely get a mortgage, go see a broker but I would say your fianc!e will lose the nice rate on the £150k.0 -
Thanks for your replies,
The rate is very low... tracker 0.94 over base.....
they were well aware of the credit card balances at the sit down stage, and he as a lender they only get nervous at when you have 40% disposable or less......
Why would having a mortgage with them already be a problem it's being kept with them?0 -
I would say that they don't want to port the rate over. As simple as that.
Underwriter will view the debt differently. In terms of you and your attitude towards finances.0 -
That's what we wondered but my worry is that this may count against us applying now with other lenders!0
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stigers007 wrote: »That's what we wondered but my worry is that this may count against us applying with for other mortgages now?
Pay it off immediately. Then no longer an issue.0 -
Thrugelmir wrote: »Pay it off immediately. Then no longer an issue.
Sorry, pay what off immediately?
If we pay off our current mortgage with HSBC we'll no longer be eligible to port across the rate?
Or am I missing something0 -
Sorry, I meant the credit card debt.
There is no way HSBC will port the mortgage. The rate is commercially unviable for them.0 -
thomasdown wrote: »This I would say could have been your downfall?
Think of it from the banks point of view, sounds like you want 2/3 of the debt on a rate where the bank probably will be losing?
Don't take it to heart with £50k spare a year you should most likely get a mortgage, go see a broker but I would say your fianc!e will lose the nice rate on the £150k.
I understand this, i was amazed when they said yes to us doing it..... but they get us to apply only to reject us, and potentially screw us find another mortgage!!0 -
Sorry but can anyone advise whether being rejected at this stage effect lenders dealing with us? Would we have to say "yes refused a mortgage" if so is there anyway we can get HSBC to not state they refused us as it seems they were never going to let us borrow the money....
We're not bothered about being rejected, it's whether or not it stops us finding another deal.0
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