HSBC nightmare - avoid avoid!

minimike2

HSBC.......

The "AIP" means nothing. Presumably it was done by a personal banker and not a mortgage adviser.

The personal banker takes figures about your credit outgoings, then the AIP uses ONS averages to give you your AIP lending amount.

When you see their mortgage adviser, they use your actual outgoings. This often leads to a large disparity in the lending amounts.

I have seen a customer sell their home, on the basis of an AIP from HSBC, go into rented, then go back for the mortgage when they found somewhere. The amount dropped from £150k to £0.

They are notorious for cherry picking their customers - That's just their risk model, but unfortunately most don't find this out until they are weeks down the line with it all.....

Dird

minimike2 wrote: »

The personal banker takes figures about your credit outgoings, then the AIP uses ONS averages to give you your AIP lending amount.

When you see their mortgage adviser, they use your actual outgoings. This often leads to a large disparity in the lending amounts.

So with AIP they ask for your typical expenditure for gas etc but it's not considered in the AIP quote?

YBS doesn't even consider personal outgoings when doing their final calculations...bit annoying since I got the exact council tax, utilities etc in preparation only to be told the ONS (or some other government thing) averages are used instead. 2.4 families completely screwing my financing ability -_-" although it doesn't have much of an effect in the end

minimike2

Dird wrote: »

So with AIP they ask for your typical expenditure for gas etc but it's not considered in the AIP quote?

YBS doesn't even consider personal outgoings when doing their final calculations...bit annoying since I got the exact council tax, utilities etc in preparation only to be told the ONS (or some other government thing) averages are used instead. 2.4 families completely screwing my financing ability -_-" although it doesn't have much of an effect in the end

They only take certain numbers from you, but not everything which the mortgage adviser includes as the AIP uses ONS, the full application check doesn't, it uses figures the MA puts in.

Dird

The (YBS) MA didn't put in any figures besides salary & student loan...think he missed my pension

capwhitt

minimike2 wrote: »

HSBC.......

The "AIP" means nothing. Presumably it was done by a personal banker and not a mortgage adviser.

The personal banker takes figures about your credit outgoings, then the AIP uses ONS averages to give you your AIP lending amount.

When you see their mortgage adviser, they use your actual outgoings. This often leads to a large disparity in the lending amounts.

I have seen a customer sell their home, on the basis of an AIP from HSBC, go into rented, then go back for the mortgage when they found somewhere. The amount dropped from £150k to £0.

They are notorious for cherry picking their customers - That's just their risk model, but unfortunately most don't find this out until they are weeks down the line with it all.....

My AIP was done by a personal banker but then the MA put the application in with confidence. When it was rejected by underwriters they put it in again with a signature from his manager AND the local credit manager on the app. That also got rejected - not one of those three people who are supposed to be professionals can tell me why. The MA even said to me "I'd love to know myself for my own knowledge" - things like that really don't fill you with confidence in the system as it is now.

justcat

How about you go to a broker and move on from HSBC. Did you consult a broker beforehand? That made you choose them?

capwhitt

justcat wrote: »

How about you go to a broker and move on from HSBC. Did you consult a broker beforehand? That made you choose them?

Already did (see original post), I walked into a mortgage with TSB via a broker, got the offer through today after the valuation. As I said, my broker said HSBC and Santander are being awful as of late. I picked HSBC as an online comparison said they would be best. You live and learn.

Thrugelmir

minimike2 wrote: »

They are notorious for cherry picking their customers - That's just their risk model, but unfortunately most don't find this out until they are weeks down the line with it all.....

HSBC have never been any different. After the GFC by default they became the largest lender left in the market. In addition to which their rates appeared very attractive. This of course is a reflection of the type of borrower and the market they are targeting.