HSBC rejected mortgage due to subjective reason but lending criteria passed

[bloodymortgage]

As the title says, my broker tells me I passed all tests during underwriting , including affordability which was tested first (5 weeks ago). However, at the very end the underwriter has "subjectively" rejected it citing future potential interest rate increases.

My broker tells me that I already passed the usual stress test so it's more than that and there is no good reason why I've been rejected. Even the HSBC business relationship manager is stumped and told my broker that he must have read the decision wrong! That manager has tried for 3 days to get an explanation from the underwriter but she is ignoring all internal emails on the matter.

I've now had to apply with NatWest and have that application escalated as well down the legal line now with completion in less than 6 weeks. Of course now I'm stressing that that application will fail too! (And the arsehole estate agent is now aware due to the second valuer and isn't best pleased to say the least!!).

Mortgage requested was £215k (LTV 73%). My salary is c£90k and I get annual bonus of £7.5k. No credit card debt but monthly loan repayments of £1240. Application in my name as my DH is self employed with variable income and his SA302s show nil due to carried forward tax losses.

What a bloody nightmare!

Anyone had similar happen?

😣😩😣

@Outnumbered99 and thanks for the well wishes 😊

OP, rather than analysing why it has been declined, your broker should concentrate on a different lender.

Yesterday’s news did not come as news to the underwriters yesterday. And not to mortgage brokers either.

Maternity is a protected characteristics but not when it comes to lending you money based on your income. The lender has to be responsible when lending and not lend to someone they know is unlikely to afford it.

We got approved by NatWest recently after being told by one broker we no way would be able to secure what we needed and to forget about it. So fingers crossed for you. What a bizarre situation.

Only other thing I could think of reducing your monthly payments on the loads by extending them out etc but you can exactly do a load of applications now

@messybutfun I have stopped analysing this - I've simply been responding to posts.

If you read the updates you would see that my broker applied to another lender on Monday.

The suspension of HSBC mortgages, according to my broker today is because they are inundated with applications and to allow them to get back on track to their turnaround times. The widely published news must be fake news then as I've repeatedly read that brokers had 4 hours notice.

I'm not going to repeat again the reason for my rejection. With a monthly net pay of £5,100, and loan repayments of £1,240, I'm fairly sure I still have quite enough to afford a mortgage of £1,250 per month. This would be the case if my DH didn't exist, but he does, and so add another few grand on top of that each month (and yes, I know the lender doesn't take that into account).

UPDATE: the hsbc underwriters manager has stepped in and is re-reviewing my case and the NatWest offer should be arriving, if not today, then Monday at the latest. I'll confirm once I know for sure for those watching this thread with interest.

@HauntedPencil Thank you, that's reassuring to hear.

Sorry missed youd had an offer! Great news.

NatWest saved our bacon too, so they are definitely my favourites right now

@HauntedPencil Haven't got the offer yet but (dare I say) broker expects it today or Monday as underwriter seems happy and just ticking off final boxes ...

UPDATE: I received the mortgage offer from NatWest. Took a little longer to arrive but apparently it sailed through no problem.

HSBC are still going back and forth with my broker. The underwriter is sticking to her guns that she has discretion to stress test twice but the manager disagrees. Hardly matters now what they decide as we are sorted. The HSBC produce was a slightly better rate and had £500 cash back but the difference isn't material so I am happy, and VERY relieved!

Am so chuffed for you. Thank you for teaching me never to go with HSBC.

@KievLoverTwo Thank you 😊

That's great news! But not a huge surprise from what you were saying previously. Just ridiculous that you had to go through all this stress due to an over-cautious underwriter who's not used any critical thinking skills re the rules she's applied. Absolutely mad that her manager didn't just overrule her!

Anyway, onwards and upwards for you OP! I hope the rest of your purchase goes smoothly.

This is exactly what happened to us. HSBC turned us down due to our second property (we own my parents house because they were too old to get the mortgage but there's now no mortgage on it) and then NatWest accepted us in 6 days. HSBC seem to be much stricter. Glad you got sorted