Mortgage declined travel

Hcascr

Hello
I have been declined for my full mortgage offer due to “travel expenses” the past 3 months. This was with hsbc. I have been on holiday 3x so can only think maybe it was taxis to the airport? I am definitely not over the average of spending on travel. I also don’t know exactly what they mean such as petrol/insurance etc it just says travel expenses. Is this something common that can happen? Seems abit too picky and also something I should have been given a chance to explain? 

Mark_d

The mortgage company need to assess the affordability of the mortgage, so that means they need to look at your bills and also your general level of spending.  If, in recent months, you've been spending £1000 per month on travel/holidays then this would impact how affordable a mortgage is.  Perhaps your commuting costs are excessive?

Hcascr

They said I am spending £175 a month on “travel expenses” so questioned affordability so not sure what they’re including. They did offer me a mortgage but under the asking so I have had to pull out the house. 

housebuyer143

Hcascr said:

They said I am spending £175 a month on “travel expenses” so questioned affordability so not sure what they’re including. They did offer me a mortgage but under the asking so I have had to pull out the house. 

Rather than pull out of the house why don't you try a different lender?

maisie_cat

Are you sure they are not referring to your travel to work expenses as well?
Do you have a season ticket or spend a fortune on petrol?

Mark_d

Hcascr said:

They said I am spending £175 a month on “travel expenses” so questioned affordability so not sure what they’re including. They did offer me a mortgage but under the asking so I have had to pull out the house. 

Hopefully you can work it out by looking at your bank/credit card statements.  Travel will include taxis, trains but could possibly also include flights and hotels.
How much have you spent on taxis in recent months?

ACG

This is one of things that REALLY frustrates me with some lenders. You get an email to say the application has been declined, sometimes they do not even give a reason!

You then have to call them to discuss it.

First thing first, a decline can be overturned. If I gave up every time we had a decline, I would have a few unhappy customers. Sometimes you have to fight for it but in your case, hopefully it will just be a discussion with the underwriter. 

I am not sure what the process is for customers directly, but give HSBC a call, see if you can speak with the underwriter. If not, ask if you can add some notes/context and see if the underwriter can review their decision. 

jimjames

Hcascr said:

They said I am spending £175 a month on “travel expenses” so questioned affordability so not sure what they’re including. They did offer me a mortgage but under the asking so I have had to pull out the house. 

£175 doesn't sound a lot for travel expenses if that includes petrol and car running costs.

kingstreet

Some lenders will look at the new address postcode, employer postcode and put two and two together. This often falls down where a HQ address has been used and/or there are hybrid working arrangements. This is the kind of plausibility stuff a broker should be prepared for with a case note uploaded on submitting the application.

HSBC only asks for a single £ entry for transport, so a justification is always helpful.