HSBC Affordability

BingyBoingy83

I’m a little dumbfounded by HSBCs approach to additional borrowing. I’m sub-60% LTV, have paid 120k off of the lending I originally took with them 7 years ago whilst earning an additional 50k per year. My net salary less existing mortgage (low rate fix ending in May 27) and car and childcare (ending in June) leaves c. >2.5k per month. I’ve just been told that the additional borrowing that would have cost another £500 per month is unaffordable. Scratch that I’ve been told they wouldn’t lend me another pound. I appreciate other bills in the affordability calc but this doesn’t make sense. My credit is good and I was told it was affordability however it makes no sense to me. They won’t give details so I’m scratching my head, particularly as the funds are to renovate the mortgaged property which benefits them to an extent. 

Am wondering if I can get more info through GDPR as I can only think my exasperated tone has left a sour taste in the underwriters mouth. And now this is for commercial reasons eg. Carte Blanche for them to refuse anything they want.
They also wouldn’t consider extending the term I was looking for eg. Mortgage due to finish at 60 atm, to make it more affordable.
id actually open to accept reasonable points if they were transparent eg, they bump my main mortgage repayment up to current rates if maturity is <5y but I’ve had nothing. Which leaves me a very frustrated customer

Brie

Have you lots of other credit available as well?  Cards & overdraft (whether you use them or not) and loans, mobiles, insurance etc?

BingyBoingy83

mortgageFTB said:

Am wondering if I can get more info through GDPR 

GDPR is about your consent. If you want to know the data held on you, you'll want a SAR.

HSBC don’t have to lend you any additional money. 

Maybe their lending criteria has changed and as a result, you’re not the right fit for them, based on your income and commitments.

Check with other lenders and perhaps remortgage.

Thanks for correcting re SAR. 

I appreciate they don’t need to lend but I’m looking for a valid reason not to lend and can’t see any. Unfortunately I can’t remortgage as have a fix with them until 27 on my existing lending which makes it a non-starter due to ERCs. Guess I was looking to see if anyone has any inside scoop on the black box affordability assumptions

Hoenir

HSBC has long been regarded as the most conservative of UK mortgage lenders. 

What would be the impact on your finances if mortgage interest rates were to be similar in 2027 as they are now? 

ACG

What does their affordability calculator say? https://intermediaries.hsbc.co.uk/calculator/

If that comes back as zero, then it is a commercial decision and SAR/GDPR would do nothing, you just do not pass their affordability calculation. 

If it comes back with a figure in excess of what you currently have and would enable you to do what you want then I would bang in an appeal/complaint. Obviously if it is £500 more than you have then its a bit of a pointless exercise.