HSBC: generous or stingy?

Black_Eyeliner

I've just had a DIP from HSBC, and the most they will lend my husband and I is £220k. This is a lot less than we need.

Are other lenders likely to be more generous than HSBC? Or are other lenders likely to offer us the same amount?

Canary_Yellow

When I tried the affordability calculator for HSBC recently, they were willing to lend me less than Santander, and probably others too.


Of course this is anecdotal evidence only, I'm sure a broker will confirm.

ACG

Why would you get a DIP without checking their affordability calculator first? Getting too many credit checks can affect your credit score.

Jump on the lenders affordability calculators, you can do it yourself with most lenders.

dunstonh

HSBC are well known for having a tight criteria and to cherry pick.

Neutrinno

ACG wrote: »

Why would you get a DIP without checking their affordability calculator first? Getting too many credit checks can affect your credit score.

Jump on the lenders affordability calculators, you can do it yourself with most lenders.

I strongly agree with ACG. Silly to get DIPS before knowing if they will even lend what you need. Use a broker or check properly yourself first.

MortgageMamma

Black_eyeliner


I've heard bad things about HSBCs mortgage processing service. Might be best to read some threads on the subject before committing to use them or any other lender as you don't want to find yourself in a stressful situation.


As a general rules most lenders max out on affordability on around 4.5x income, but some are more accepting of things like tax credits, second incomes, overtime, bonuses etc. Speak to a broker, by taking the time to do that it saves you having to check with about 250 lenders at once (or roughly 9000 mortgage deals).

SavingSteve

Anecdotally : Yorkshire Building Society group (inc Chelsea etc), Barclays & Coventry Building Society all seem to be more 'generous'.

I thought (could be wrong) that the initial DIP that HSBC and First Direct do is off a 'soft' search on the credit file, not a hard search? Again, this is only anecdotal, would appreciate correction from those in the know.

muhandis

The amount lent might also depend on what kind of income you have eg: Just a basic salary, basic + annual bonus, basic + monthly commission + annual bonus, etc.

For example when we were taking out a mortgage NW would lend us more than double what other lenders like Halifax, etc were willing to lend, primarily because they way they considered income was most favourable to the way my pay was structured.

Your best bet (before getting any more DIPs) would to check out the detailed affordability calculators on lender websites or contact a broker to see what other lenders might be willing to lend when compared to HSBC.

https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

http://www.nationwide-intermediary.co.uk/calculators/aff_calc

Black_Eyeliner wrote: »

I've just had a DIP from HSBC, and the most they will lend my husband and I is £220k. This is a lot less than we need.

Are other lenders likely to be more generous than HSBC? Or are other lenders likely to offer us the same amount?

Black_Eyeliner

Thanks everyone. I went to HSBC because we remortgaged with them in July, at which point they were willing to lend us £280k (what we need now). I didn't foresee them offering me £60k less just two months later. The DIP involved a soft search, so no harm done.

MARTYM8`

Best to use the detailed calculators for intermediaries as they are a bit more in depth - they are publicly available so why not. I always found HSBC gave generous limits on their calculators - but when you applied they offer less.


Several examples below.

http://www.nationwide-intermediary.co.uk/calculators/aff_calc

https://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

http://www.leedsbuildingsociety.co.uk/intermediaries/borrowing-calculator/

https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/