HSBC and Credit Cards

mrsmortgage

I’ve been refused a mortgage by HSBC because of how I use my credit card... However it’s their own credit card on 0%!

Is there any way around it? I only called them because my mortgage broker thought it was a good idea and he doesn't work with them.

All other mortgage brokers have no issue with it, just that I have to clear it before completion.

haras_nosirrah

Hsbc as a lender count debts against you even if you are planning on clearing them.

Is this what happened?

haras_nosirrah

Many many lenders ignore debts that you are going to clear. There are a couple of lenders who work on the basis that even if the debts are cleared you are likely to run the balance back up again or won't pay them off even if you say you will. Hsbc is one of those lenders.

They won't change their stance so if you need a lender who won't count your credit cards you need to choose a new lender and potentially a new broker

mrsmortgage

I have some yes, but I didn’t even got a smaller offer (like other lenders) just a plain”NO”.

csgohan4

your missing key information in your OP:

Have you exchanged with the vendor? if so, unwise if no mortgage offer and now your liable to lose your deposit if you don't complete

Define 'how you your credit card'?? Large balance on card? Don't pay off in full every month??

how much is the house? how much debt? what is your combined gross income?

Credit history: anything averse??

Not all brokers have access to HSBC, I assume you went direct?

HSBC is one of the more stricter lenders

haras_nosirrah

I don't understand what you mean by how you use your credit card. Do you not pay the bill when due?

mrsmortgage

Nothing adverse. After being on the phone for one hour... Their only explanation was a missed payment that was acknowledged as their own fault.

The balance is not paid in full as it's on 0%.

No house has been found. Only went direct as advised my broker (who I won't use anymore).

We have an LTV of 80% and that's considering paying off that credit card.

We wanted £180k but we're flexible, that's on a joint income of £40k.

Now I'll have to write to HSBC with a formal complaint about the mishandling of that direct debit, they cancelled it for no reason and wasn't notified about it.

mrsmortgage

haras_nosirrah wrote: »

I don't understand what you mean by how you use your credit card. Do you not pay the bill when due?

Of course I do! That's why I don't understand what they were going on about.

haras_nosirrah

Ok so you are looking at getting near 4.5x joint. Should be feasible even with 1 missed credit card payment (although better if the credit card missed payment is not within the last 12 months)

There are lenders who would be ok with this I feel. Hsbc are the strictest lender out there so going to them was a mistake but I think it would be placeable without too much difficulty and with a lender who will allow you to clear cards post completion

mrsmortgage

haras_nosirrah wrote: »

Ok so you are looking at getting near 4.5x joint. Should be feasible even with 1 missed credit card payment (although better if the credit card missed payment is not within the last 12 months)

There are lenders who would be ok with this I feel. Hsbc are the strictest lender out there so going to them was a mistake but I think it would be placeable without too much difficulty and with a lender who will allow you to clear cards post completion

I have been promised it will be amended as it wasn't my fault (should be cleared within 30days). I can possibly get a letter from HSBC explaining this too.

At least I know HSBC is super strict and has nothing to do with me (so to speak).

haras_nosirrah

We can use hsbc (and do) but wouldn't with anyone with missed payments.

Other lenders have similar rates who aren't as strict. Do you have a house you have already found?