A bit of news re porting a mortgage

Jhoney_2

Poorly written story then, as they admitted the mistake immediately, did a detailed review with the same Lenders MA and had assets to repay at end of term?

It reads very differently to me, so thank goodness there a people who can work it all out.

I think they applied the MMR rules badly and had to wriggle out of it.

It's a little hope for existing borrowers who do not fit the new criteria, imo. And not just this Lender i'm sure.

It isn't something that will affect all their customers, so it would be fair of them to be a little lenient in light of their own bad financial management and subsequent bailout.

amnblog

These press stories are often about nothing.


Client wants deal - client gets deal


Not to say that existing borrowers are not being disadvantaged post MMR.

Thrugelmir

The couple, who own their own optician franchise, went through a detailed financial review with one of HSBC’s own mortgage advisers. She determined that the transfer was affordable and submitted the application to the underwriting team for approval.

That was when things started to go wrong. To their surprise, the underwriter declined the application, saying the loan was not affordable.

When have mortgage advisers ever had the authority to make mortgage offers? More worryingly is the assumption that this would be on the basis of a financial review. Whatever this is!

Writer has no idea what the role of an underwriter is either.

“Because you are moving to a new house we have to assess the mortgage application under current guidelines and we need to demonstrate that the mortgage is affordable to you now and if interest rates were to rise.”
This statement is not strictly correct.
The regulator did introduce tough requirements in April but put in place “transitional arrangements” so that existing borrowers who don’t meet the new tests are not disadvantaged.

New mortgages have always been subject to underwriting. Not least that lenders can impose whatever terms and conditions they wish. In the case of MMR the changes were regulatory so impacted the whole industry.


Another poor piece of journalism written by an individual who seems to have the "people have a right to attitude". When actually they don't. Commercial companies can trade on whatever basis they wish. Provided it complies with the overall legal and regulatory framework.

Rather daft to pick on HSBC who suffered none of the issues of other lenders in the GFC. Due to their conservative lending policies.

In essence another non story.