HSBC Mortgage denied, fees to be paid!!

dunstonh

I'm not that old a git, but it wasn't that long ago that mortgages were fees free!

But the charges were bundled into the interest rate and hidden. So, you were still paying them. You just didnt see it as cleanly.

There are some mortgage deals that still do it like that and they can suit small borrowers. However, for medium to larger borrowers, the more you pay on explicit fee, the lower the interest rate usually is and that can result in much better terms.

I cannot blame L&C for punting an unsuitable product.. This is the one I wanted and specifically asked for.

Did they make you aware of HSBC's lending criteria issues? Every broker going knows HSBC are like this. When you use a broker, they are meant to cover things off to protect you from things like this. It is not always possible but if they failed in their duty to advise you then you may have scope to question whether they should pay this fee for you.

You would expect them to say that HSBC are tight on criteria and you are pushing things with your situation and you may find you end up paying a fee of £284 if they reject the mortgage. If they did and you proceeded then they did their job. If they didnt warn you and you only found out after the event that the charge existed, then they failed in their duty.

jezzer_72

I had a similar decision trying to buy a house on saturday. I sympathise with you as it is frankly disgusting what they do. The have all the same details, relating to income and outgoing, tell you that your affordability is fine, you make the application and you get refused. At least this was what happened in my case.