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Mortgage rejection
GCL1
Posts: 3 Newbie
Me and my partner applied for a mortgage with a 10% deposit with HSBC and we were accepted. Long story short, we had to ‘reapply’ for the mortgage with a 5% deposit, which they rejected...
Me and my partner both have good credit scores, the only thing changed since reapplying is that we got a joint reward current account (I also switched banks for my sole account), credit check from virgin media (tv/broadband), and NatWest did a credit check for a credit card for some reason.
Are the above reasons often a cause of being rejected when applying for a mortgage? Other posts suggest HSBC are very picky with who they give mortgages to!
Any advice would be appreciated
Me and my partner both have good credit scores, the only thing changed since reapplying is that we got a joint reward current account (I also switched banks for my sole account), credit check from virgin media (tv/broadband), and NatWest did a credit check for a credit card for some reason.
Are the above reasons often a cause of being rejected when applying for a mortgage? Other posts suggest HSBC are very picky with who they give mortgages to!
Any advice would be appreciated
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Comments
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Why did you have to "reapply" with a smaller deposit?0
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Couldn’t get the money to make a 10% deposit. Parents were going to give us money towards it but couldn’t.0
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More likely small deposit was reason for rejection. I don't think the searches would be the reason.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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I agree with the above that the searches will have had minimal impact, but the halving of the deposit will have had a huge impact.
However...
... by "for some reason" you mean that this isn't something that you have done, it's worth following up. Could just be a glitch in the data (which might have already been fixed) or might show that someone has tried to apply for a credit card in your name.NatWest did a credit check for a credit card for some reason.0 -
Perhaps HSBC saw the Credit card search followed by your change to a 95% mortgage as an indication that you were trying to borrow the extra 5% on a credit card and they saw that as you being someone who they didn't want to lend to.
Worth finding out what the CC credit check was for i'd think if you have no idea what its aboutThose who risk nothing, Do nothing, achieve nothing, become nothingMFW #63 £0/£5000 -
Don't rule yourselves out for a 95% mortgage, you may still be able to get one. See a broker!I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I agree with Mortgage mumma, see a Broker for this.
HSBC generally wouldn’t be my lender if choice for a 95% Mortgage.
Most lenders will be much tighter on affordability and use different criteria at 95% than 90%I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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