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HSBC Declined Mortgage
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MoodyAboutMortgages said:MWT said:MoodyAboutMortgages said:HSBC have straight declined the application and will not even put it in front of an underwriter. The reason they have stated is something on our credit report doesn't meet their criteria - we have checked our reports, both are 999 not even a late payment, they are spotless, our affordability isn't the issue either. They say they cannot tell us anymore, so we have had to raise a complaint.Use somewhere like checkmyfile.com to check all the important credit agencies, not just Experian. Do look through all the details and especially the associations and fraud alerts.MoodyAboutMortgages said:My only thought on why this may be is that my income has been unstable the last 12m due to maternity leave, bonus months, and redundancy (I have a new job and have proved this). But they won't let me explain and evidence the reason for income fluctuation, if that's even the problem.If there are differences between what you have told them about your current salary and what HMRC are showing that might cause issues.1
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MoodyAboutMortgages said:movilogo said:can we take this to the ombudsman and what are the chances of claiming any of this back?
If HSBC won't lend you just go to a different lender.0 -
ian1246 said:MoodyAboutMortgages said:movilogo said:can we take this to the ombudsman and what are the chances of claiming any of this back?
If HSBC won't lend you just go to a different lender.0 -
"HSBC criteria;-
Basic income - Proof required
The latest one months' worth of payslips for all customers.
Where a customer is unable to evidence their basic income in accordance with these requirements, the application will not be able to proceed."
Did you have a broker establish your circumstances would be acceptable prior to the submission of an application?I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet said:"HSBC criteria;-
Basic income - Proof required
The latest one months' worth of payslips for all customers.
Where a customer is unable to evidence their basic income in accordance with these requirements, the application will not be able to proceed."
Did you have a broker establish your circumstances would be acceptable prior to the submission of an application?0 -
Update that may help others in the future: Our complaint is ongoing and the case is now with an underwriter, which is what we wanted, for a person to have a look.
I only got to this stage because I quoted the following regulation - HSBC were absolutely not forthcoming with this.
"The UK GDPR gives people the right not to be subject to solely automated decisions, including profiling, which have a legal or similarly significant effect on them. These provisions restrict when you can carry out this type of processing and give individuals specific rights in those cases." One of the examples it gives is a declined loan application, further info here.
What does the UK GDPR say about automated decision-making and profiling? | ICO
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MoodyAboutMortgages said:Update that may help others in the future: Our complaint is ongoing and the case is now with an underwriter, which is what we wanted, for a person to have a look.
I only got to this stage because I quoted the following regulation - HSBC were absolutely not forthcoming with this.
"The UK GDPR gives people the right not to be subject to solely automated decisions, including profiling, which have a legal or similarly significant effect on them. These provisions restrict when you can carry out this type of processing and give individuals specific rights in those cases." One of the examples it gives is a declined loan application, further info here.
What does the UK GDPR say about automated decision-making and profiling? | ICO
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I'll share my own experience. This was 15 years ago so hopefully processes have improved by then but...
I was gobsmacked when Nationwide (who I already had a mortgage with) rejected my application for a new mortgage to staircase a shared ownership flat to full ownership, on the basis of a failed credit check. Like you, I had a spotless credit history.Nationwide gave me no helpful information ("computer says no") but I was able to work out that they were using Experian as their credit rating agency. On downloading my Experian report I found it was massively incomplete, and didn't even include my current Nationwide mortgage. In effect, it looked like I had never borrowed any money in my life! I got on the phone to Experian to query this and to their credit they spotted the error almost immediately. My information had been split between multiple different files on their system, all with my name but with different variants of my address. They unified the files and the very next day, my Experian file had all of my information.
Fortunately, the next mortgage I applied for was accepted, and the happy ending is that the rate was much lower than the mortgage I had originally applied for with Nationwide.My advice to you is to look carefully at your credit files, and not just for missed payments, also look for missing information. Also, don't assume that another bank will treat you like HSBC has.1 -
Hoenir said:MoodyAboutMortgages said:Update that may help others in the future: Our complaint is ongoing and the case is now with an underwriter, which is what we wanted, for a person to have a look.
I only got to this stage because I quoted the following regulation - HSBC were absolutely not forthcoming with this.
"The UK GDPR gives people the right not to be subject to solely automated decisions, including profiling, which have a legal or similarly significant effect on them. These provisions restrict when you can carry out this type of processing and give individuals specific rights in those cases." One of the examples it gives is a declined loan application, further info here.
What does the UK GDPR say about automated decision-making and profiling? | ICO0 -
Nailer99 said:I'll share my own experience. This was 15 years ago so hopefully processes have improved by then but...
I was gobsmacked when Nationwide (who I already had a mortgage with) rejected my application for a new mortgage to staircase a shared ownership flat to full ownership, on the basis of a failed credit check. Like you, I had a spotless credit history.Nationwide gave me no helpful information ("computer says no") but I was able to work out that they were using Experian as their credit rating agency. On downloading my Experian report I found it was massively incomplete, and didn't even include my current Nationwide mortgage. In effect, it looked like I had never borrowed any money in my life! I got on the phone to Experian to query this and to their credit they spotted the error almost immediately. My information had been split between multiple different files on their system, all with my name but with different variants of my address. They unified the files and the very next day, my Experian file had all of my information.
Fortunately, the next mortgage I applied for was accepted, and the happy ending is that the rate was much lower than the mortgage I had originally applied for with Nationwide.My advice to you is to look carefully at your credit files, and not just for missed payments, also look for missing information. Also, don't assume that another bank will treat you like HSBC has.0
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