HSBC non refundable product fee

djcookster

Can anyone help? HSBS are currently offering a 5 year fixed 5.39% mortgage with a product fee payable upon application. This fee is non refundable, when i spoke to someone from HSBC today they informed me that i had to pay this fee on application. If my application was rejected for whatever reason then i would loose the fee!!! is this correct? With the amount of mortgage application rejections you hear about today, surely this is just a cash cow for the bank???

Although i had a good experian credit score (918), i had a couple of searches when looking for a loan deal, this has now decreased to (768) Fair. I am scared of paying the £999 then gettin rejected on my application for my credit score.

Anyone got any advice, or anyone used this product through HSBC??

homer_j_3

Have you compared that deal to the rest of the market?

It does seem a competitive deal however, you have spotted that it could be expensive if it doesn't go through for any reason. I would see what the best a decent broker can do for you if you cannot afford to lose £999 as this is worst case scenario.

Reds-on-Sea

there was a similar post about this, I don't know if HSBC do it, but a lot of lenders allow you to add the fee to the mortgage, therefore not paying anything up front. Obviously, this removes the risk of losing it if it's not accepted. If it is accepted however, and you have the cash, you could always over pay right?

Woodgnome_2

I am waiting on the same deal.

Technically if you pay upfront with knowing if you have been accepted then yes you would lose this money.

However

Our mortgage has gone to referral once we know if this has been accepted then we will go in and pay the £ 999 to secure the rate. I went in on Monday and they said it could take 5 days for us to get an offer. The only downside is the rate of 5.39% could disappear before we get accepted. The Mortgage manager said the rate is unlikely to change in the near future.

So go to your local Hsbc see the Mortgage manager, Wait for acceptence on the deal then secure the rate. This way you won't lose the £ 999.

The £999 can't be added to the mortgage by the way.

lee3272

think anyone trying to get this deal now will find out its just been pulled ive just tryed to get it and now its not there computers from dinner time

Woodgnome_2

Don't tell me that I will go into depression.

Woodgnome_2

It's still on the Hsbc website.

Woodgnome_2

Lee you are correct as of today it has been pulled. I am now in the situation of risking booking now and losing the £ 999 if I am rejected as per the original post. Arrrgh.

_Andy_

Ring HSBC and get an agreement in principle, this should let you know if you fail their internal credit scoring.