HSBC Mortgage Non Refundable

Neildfulton

We took out an HSBC mortgage deal that was non refundable. We got this approved on Monday and paid all fees upfront (after 4 weeks of them assessing our application) . This was £1499 lenders fee and surveyor costs. Then unbelievable bad luck. The next day the seller pulled out. We went back to HSBC 17hrs later. They had taken the money out of our bank but had not progressed with valuation. They refused to refund the money standing by the non refundable product. We have banked with HSBC for over 15 years. We are now pursuing the formal complaint process as we don't have £1499 to lose. They have said we have 6 months to find another home but we would expect more flexibility from our bank given it has been less than 24hrs between the mortgage being approved and the house sale falling through. What if we can't find that perfect home within 6 months? And we don't have £1499 to be put on hold for that period. And what if we want to buy a new home for less or more expensive than the mortgage deal approved? Im sure there are others out there that have fallen victim to the ridiculously unprotected english laws for house buying but what about examples of house sales falling through so early in process? I welcome any advice here. Thanks

Thrugelmir

Caveat emptor. The terms of the product would have been clearly stated.

You still have six months to find another property.

So the product you applied for is still available.

You'll be complaining more if the product wasn't available next time around and rates have risen

ACG

If you find a property for less, you can reduce the amount down. The purchase price doesnt have to be identical.

Neildfulton

What happens if we find a property more expensive? Cheers

ACG

Then you need to ask them if they will increase the borrowing.

Neildfulton

Lets see if they will be flexible here. Thanks

dotdash79

I would concentrate on finding another house rather than about complaining to HSBC. Wait until 6 months is up.

kingstreet

We recommend products where such fees are added to the loan for this very reason. The borrower pays it off within his early repayment fee-fee allowance the day after completion, so it means no interest is charged and the cost of a "fall-through" doesn't get too high.

You never know if another lender's product will be better when the next property is found.