Very confused why my mortgage application has been rejected. Any advice?

Incris

Hi All,

I've just received notice today that my mortgage application with HSBC has been rejected, with the somewhat cryptic explanation that my monthly outgoings and income did not meet requirements. I wonder if anybody has any ideas as to how they reached this conclusion.

For an application for £225000 with a deposit of £25000 (90% LTV), I was looking at monthly repayments starting at ~£1220. I currently earn £60000 with a minimum take home of £3200 pcm and in reality more typically £3400 pcm (due to overtime). On my current budget I will pay in at least £1250 into savings a month- more than the prospective monthly repayments.

I have no standing credit agreements, I pay off my only credit card monthly and the only time I have used any over draft facility if the last 5 years was last summer, which was used for approximately 2 weeks and was well within my agreed facility. In fact I have previously never held any credit agreement excluding a student loan which is paid direct from my earnings and I am well on the way to clearing (by my estimation ~4 years repayments to go), subsequent to which I should have between £400-£600 extra a month take home.

Does anyone have any idea what has gone wrong so I can get on and make another application as soon as possible? I would be especially grateful if anyone can advise how to get the greatest level of detail from HSBC regarding how they made their decision.

KR,

Incris

PinkHouses

It sounds as it you can definitely afford it! Is your job full time and permanent?

Thrugelmir

Dependents i.e. children partner?

Incris

My job is full time and permanent, 3 years working for the same company with good prospects of advancement and I have no dependents.

Funny_old_game

Ah........welcome to HSBC and tightened criteria which I'm all in favour if.

Thanks.

ACG

How much is your basic wage?

Gaz_W

Incris wrote: »

Hi All,

I've just received notice today that my mortgage application with HSBC has been rejected, with the somewhat cryptic explanation that my monthly outgoings and income did not meet requirements. I wonder if anybody has any ideas as to how they reached this conclusion.

For an application for £225000 with a deposit of £25000 (90% LTV), I was looking at monthly repayments starting at ~£1220. I currently earn £60000 with a minimum take home of £3200 pcm and in reality more typically £3400 pcm (due to overtime). On my current budget I will pay in at least £1250 into savings a month- more than the prospective monthly repayments.

I have no standing credit agreements, I pay off my only credit card monthly and the only time I have used any over draft facility if the last 5 years was last summer, which was used for approximately 2 weeks and was well within my agreed facility. In fact I have previously never held any credit agreement excluding a student loan which is paid direct from my earnings and I am well on the way to clearing (by my estimation ~4 years repayments to go), subsequent to which I should have between £400-£600 extra a month take home.

Does anyone have any idea what has gone wrong so I can get on and make another application as soon as possible? I would be especially grateful if anyone can advise how to get the greatest level of detail from HSBC regarding how they made their decision.

KR,

Incris

We are in exactly the same situation with HSBC. Out of curiosity how much did they say you could have in the AIP?

I am about to post a similar thread now so as not to hijack yours.

Incris

ACG - My basic is £60000 pa.

Gaz, sorry to hear you are having a rough time to. The online calc suggests 279,000. How about you guys?

GMS

HSBC are the pickiest lender and MMR has lenders scared. Terrible combination.

Speak to a broker and see how this can be done. Don't apply at random to lenders as credit score will be impacted.

Gaz_W

Incris wrote: »

ACG - My basic is £60000 pa.

Gaz, sorry to hear you are having a rough time to. The online calc suggests 279,000. How about you guys?

The online calc tells us £347k and we got the same offer in the branch.

When it came to it they have turned around and said they wont give us more than £206k we asked for £250k.

Funny_old_game

Don't trust the online calculator then. Its always going to be a case of until you apply nothings concrete.

Have to say it'd a massive drop, either they have picked something up your unaware and they can't disclose or you score is worse in their eyes than you think.