Mortgage refused by HSBC

zhm

Hi,

Looking for some advice please, We've been looking for a house for nearly a year now and just found one we like and our offer has been accepted. We got an agreement in principle from HSBC on a £60000 mortgage on a £350000 house and the rest being paid by cash. today we recieved a phone call that they have refused us. we have a good credit history and they have refused us on the basis that we have a flat with a remaining mortgage of £90000 which we are going to let and also having two dependants(our little ones)!!!!!
Just found the refusal odd and not sure what to do next as my DH commutes 90 miles everyday and the amount he is paying on petrol every month is more than the mortgage repayment and we are desperate to move ASAP.
Any advice would be appreciated.

Edi81

HSBC are one of the pickiest lenders.

Get copies of your credit reports from the three credit reference agencies and go to an independent broker not one toes to an estate agents.

maisie_moo_2

Did you get to the valuation stage or was it declined once you put in the full application?

Thrugelmir

Sell the flat.

kingstreet

Talk to a broker.

There are lenders who will ignore let property in the background if self-financing. Obtain a letter confirming the rental income from a local ARLA registered letting agent.

The broker will also be able to ensure only a lender where you meet affordability requirements is used. You've had one, so try to avoid going direct and having any more speculative credit searches.

Mortgage_Mark_2

As above, speak with a broker. HSBC are brilliant for offering market leading rates, the downside of that is that they're amongst the more risk-averse lenders out there. They like 'vanilla' applicants which are nice and easy, and low risk.

That's not to say that you're particularly abnormal of course, there will almost certainly be other high street lenders out there who will lend, which a decent broker will explain to you, and let you know where you stand.

zhm

thank you all very much for your replies, we will definitely get in touch with a broker and try to sort things out. The flat is in a popular area with good rent and realistically selling is not an option and we want to keep it for our retirement days.
Thank you all again