HSBC told us porkies

foofi22

Hi

OH and I applied for mortgage with HSBC.

They turned us down, mortgage manager in branch said that we had passed both affordability and credit checks - no reason given for the rejection.

Cue another application (with another provider) later and we are again rejected, but this time we are told there are loan defaults and missed payments on one of our files (these were errors and have now been corrected)

Is a lender allowed to say something is 'fine' when it clearly wasn't? (I doubt HSBC viewed the loan default as being 'fine'!)

I'm not looking for 'compo' I just think it's poor form to be told what amounts to a lie!

p.s. we are FTBs and are now well aware of the need to check credit files before applications.

Anyone reading this make sure you check your file(s) before you apply, even if you think it is squeaky clean

GolfFoxtrot

Most mortgage companies have in the small print of the application T&c's that they can refuse you without giving any explanation.
The best thing to do is to check your files before you apply but it's a little late for that now.

Good luck with the new application

Yorkie1

Different lenders have different attitudes towards risk and what they will accept on applications.

If I recall rightly, HSBC is one of the pickiest lenders around. The mortgage person in branch may not have known the details for your refusal, or he may not have been able to tell you.

GingerBob_3

The issue here appears to be the HSBC clerk saying everything was fine - a lie.

Also, this case illustrates the broken functionality of the credit reference system - the underlying reason for the failed application. It's all very well checking that no-one has reported erroneous data against you, but it's another thing trying to get it corrected before things go belly up.

Jack_Johnson_the_acorn

Yorkie1 wrote: »

Different lenders have different attitudes towards risk and what they will accept on applications.

If I recall rightly, HSBC is one of the pickiest lenders around. The mortgage person in branch may not have known the details for your refusal, or he may not have been able to tell you.

The OH and me where rejected by HSBC 2 yrs ago with near Perfect credit history, no explanation given. The mortgage was only 2.2x our joint income. We quickly re-applied via Natwest and our application was accepted within days.... HSBC advertise some of the best rates when compared to the other big banks so I suppose they are just being exceptionally picky..... 2 Yrs on and we have never missed a payment and currently overpay by 100% of monthly mortgage payment......... So you're not alone.

foofi22

GingerBob wrote: »

The issue here appears to be the HSBC clerk saying everything was fine - a lie.

Also, this case illustrates the broken functionality of the credit reference system - the underlying reason for the failed application. It's all very well checking that no-one has reported erroneous data against you, but it's another thing trying to get it corrected before things go belly up.

Yep that's the issue.

No problem being rejected on whatever reason they deem worthy.

My problem is being told something is fine when it is not.

The reason given on the form the mortgage adviser was reading from said "Category 1 - Failed Scoring"