HSBC doesn't want to Lend?

ronctlsmile

Today I went to renew my decision in principle and I found out that HSBC was willing to lend me 58000. It was a shock for me as I approached them three months ago. I could borrow 234000 pounds from them. It was very annoying as I could see that they offer quite low rate of 2.19 for the 2 year fixed rate mortgage.

Financially I am a very healthy guy. I am always on time for all the payments and never own any money from anyone, let alone banks. I never asks for any loan in the past. This is my first time to ask for a mortgage. I have 96% credit score in Expedian. I have a sustainable amount of deposits, which is 20% of the current property I want to buy. My annual income is more than 50,000 and the jobs, both full time and part-time are permanent. It is still baffling me why I can't get around 200000 mortgage from HSBC

The one thing I could think of at the moment, there is a bank error in my credit card accounts. Initially HSBC suggested that I still owned me 200 pounds in my second credit card. After an initial investigation, they replied me that it was their fault and told me that I had no liability for the payment. I am not so sure because of this reason why I can't get the higher amount of mortgages.

It is very annoying me because I had an offer of a flat. I don't want the HSBC error to mess up my mortgage application.

It would be great if you have ideas to resolve it.

Thrugelmir

Do you bank with HSBC?

ACG

A £200 credit card is not going to make £150k difference.
Have you asked HSBC?

HSBC reducing how much they will lend will not affect other lenders. But I would suggest getting to the bottom of why they are only offering £50k. It could be something as simple as only allowing 50% of your second jobs income?

ronctlsmile

Thank you for your all replies. Yes, I am a HSBC customer for the last ten years. I have been passing around from one department to another. I have talked to the HSBC fraud team, the HSBC customer care department dealing with customer complaints, the general HSBC telephone banking customer service team and members of staff in the HSBCS branches in Canary Wharf. What I got from them is that they don't know and they don't know which department dealing with the final decision on mortgages.

I got so furious for the whole thing. one of the members of staff even asked me to get an mortgage from another bank...

I have 45 thousands from my full time job and 11 thousands from my part-time job. I don't why they offer 50% of my second jobs income.

Thrugelmir

The DIP then suggests that they don't want your business for some reason.

Xeorix

We went into HMRC for a DIP and they didn't even bother checking our bank statements to give it to us, said that comes later when applying for the mortgage....

Anyway, when we were in the bank she essentially said that their system is rubbish and she's seen it offer people who are financially healthy and could easily afford £350k, less than £50k for a mortgage.
She said don't worry and just go through the application anyway as chances are the DIP will change.

At that point we walked away as a far as I'm concerned, a DIP is a maximum mortgage you can take.

We found a mortgage broker through Countrywide and he's been brilliant. Went to see him, went through all the details, he took my bank statements off me and came back to me within 12 hours with an agreed DIP from our chosen bank.