HSBC mortgage declined

gazh1980

Thrugelmir wrote: »

Current level of debt will impact on a lenders decision.

Debt is credit card around £1200 and no personal loans so hopefully this wouldn't be a major issue!

Jimbo1976

Whilst there seems to be nothing untoward about your situation, as heas been explained before HSBC are extremely picky and on occasions seem to decline perfectly good borrowers for no reason. This forum is littered with people who are victims of HSBC's "Computer says no" stance.

I realise this is very frustrating to be turned down for no reason but I am sure you will be able to secure a mortgage from another lender.

Experian_company_representative

If it is 'computer says no' then you can appeal and ask for a manual review under the Data Protection Act. But first, try asking them to explain the refusal - they may be able to give you the principle reason, which might prove helpful, particularly if it's around income/affordability for example.

James Jones

Thrugelmir

gazh1980 wrote: »

Hi ACG. No issues with affordability as amount I need to borrow isnt astronomical and well within our means (joint application)

Your assessment of affordability and that of the banks may well differ.

In outline how much are looking to borrow, what's your household income, and what's the LTV.

Do you any dependents i.e. children.

padington

HSBC basically do leading mortgage rates as a bit of a loss leader to cherry pick people with other assets that they can profit from. It's a big 'up sell' game for them.

If you were not looking to be upsold with their financial planner or didn't have much else they could work with, they wouldn't have been interested much however good your credit rating for there very best rate.

My experience of HSBC was terrible as well, really really wouldn't recommend them. I pulled out just on the experience of the hard sell to sink everything I had in cash before I brought the property into their share schemes.

Terrible advice, awful service.

Thrugelmir

padington wrote: »

HSBC basically do leading mortgage rates as a bit of a loss leader to cherry pick people with other assets that they can profit from. It's a big 'up sell' game for them.

Loss leader? You are out of touch with banking trends.

padington

Thrugelmir wrote: »

Loss leader? You are out of touch with banking trends.

So why so they turn down so many people with perfect credit histories oh wise one.

bigadaj

padington wrote: »

So why so they turn down so many people with perfect credit histories oh wise one.

No such thing as a perfect credit history, despite the hype of experian, equifax etc

Whilst it might be a wild assumption and simplification to quote supply and demand in markets operated by banks, that is what is happening. Banks only ever want to lend money to peop,e who don't need it, ie have the money anyway, at as high an interest rate as possible.

HSBC offer some of the best rates, and so a minor blot on your record can mean they have better risk with one of ther many other potential customers.

padington

bigadaj wrote: »

No such thing as a perfect credit history, despite the hype of experian, equifax etc

Whilst it might be a wild assumption and simplification to quote supply and demand in markets operated by banks, that is what is happening. Banks only ever want to lend money to peop,e who don't need it, ie have the money anyway, at as high an interest rate as possible.

HSBC offer some of the best rates, and so a minor blot on your record can mean they have better risk with one of ther many other potential customers.

I don't disagree but they also use sales 3.0 tactics. Once upon a time people used to sell. Then they upsold as well. What HSBC seem to be doing, from my experience anyway, is that they are pre-selling. Enforcing up sales for the primary sale to be available. It's quite clever but very annoying at the same time.

I believe you can get the best rates without being upsold but only on the basis that they think you're a bit flash with the cash and rump meat for their 'financial advisers' or whatever they call them to sell their other products.

Thrugelmir

padington wrote: »

So why so they turn down so many people with perfect credit histories oh wise one.

HSBC have always been one of the most conservative lenders in the market. Targeting very specific potential borrowers.Now that all the cheap and easy lenders have fallen by the wayside. HSBC is now the largest single net new lender in the market. Hence the demand in its products. HSBC has never changed its ways. The market has shifted.

Perfect credit history is in the eye of the borrower. Lenders score in different ways to people assume. Nor forget that mortgage fraud is on the increase as people attempt to obtain that elusive mortgage they desire.