Refused by HSBC

Refused for a mortgage by HSBC

You are not the only one who has had an HSBC mortgage application declined.

First, many borrowers are turned down by high street lenders and go on to obtain the financing they need elsewhere. A specialist mortgage broker like ourselves will introduce you to a mortgage lender who will get you a mortgage approval.

Secondly, we are here to help you save your home-buying dreams and provide mortgage advice free of charge.

This guide will tell you whether HSBC will decline your application for a mortgage and what to do if they reject you. It also explains how a mortgage broker can help you get your mortgage dreams back on track when you seek professional advice.

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Is HSBC a strict lender of mortgages?

Like all high-street mortgage lenders, HSBC will typically take a strict stance towards applications that do not meet their lending criteria.

Borrowers with a”severe” credit score are frequently rejected. Self-employed individuals without sufficient income proof are also often turned down.

Remember that a rejection by HSBC for any reason should not mean the end of your mortgage plans.

Contact mortgage brokers like ourselves. We can introduce you to a provider whose lender criteria you will match.

There are specialist lenders available for customers whom HSBC does not have the flexibility to serve, and a mortgage broker with an existing relationship with HSBC may be able to negotiate on your behalf.

What should you do if HSBC has declined your application for a mortgage

Here are some steps when your HSBC mortgage application declined:

1. Do not rush to submit another application. It’s possible to be tempted to rush to another lender to get a better result, but who’s to say that you won’t receive the same response from HSBC? You must contact the right lender again. Too many unsuccessful applications for financing in a short period can cause credit report damage.
2. Learn why HSBC won’t lend you money
   You should have all the facts about your mortgage rejection. You should request a copy if there were a property problem during surveys. If you fail HSBC’s credit applications, you can download all your credit reports to see the issue and correct any incorrect or outdated information before you apply for your next mortgage.

We can help you with these issues

If you feel that HSBC will decline your application for a mortgage due to any of these issues, it is possible to get still approval for the financing you need through the right mortgage broker.

Our network has brokers who have access to exclusive deals from HSBC. However, if you don’t meet their criteria, they might be able to help you find a different mortgage provider that offers more flexible lending terms.

If you need expert advice, contact us immediately

• You will need to borrow five- or six times your salary
• Self-employed, with one year’s account
• Any type of bad credit history
• You are more open to taking on risks, e.g. Gambling, debt management plan
• A guarantor mortgage is what you need
• It’s not clear who you should re-apply with

Reasons HSBC declines mortgage applications

• Your affordability criteria are not met

All UK mortgage lenders base affordability criteria on a multiple to the applicant’s income. HSBC caps their lending at 4.49 times the average salary. This is a limit that many lenders will not offer. HSBC may reject your application if your income multiplied by 4.49 is less than the amount you need to borrow for your mortgage.

• Self-employed with no proof of income

Mortgages are available from HSBC for self-employed persons. However, you may have difficulty getting one if your trading history isn’t long enough. You won’t be approved for a mortgage if you don’t have income proof for at least 24 months.

• You failed HSBC credit checks

HSBC’s mortgage lenders can be very strict about poor credit. Many kinds of it will usually result in an automatic rejection. If you have a debt management program, arrears or a county court judgment that was registered less than 36months ago, they will likely decline your mortgage application.

HSBC’s mortgage rejection rate for credit score issues is high. They also consider bankruptcies within the past three years. If you apply for a mortgage from HSBC with a bad credit score, they may either reject you or charge you a high-interest rate.

• Property problems were discovered during the surveys

HSBC has approved some mortgages subject to valuation for people, but a problem with the property during surveys can cause it to be rejected. It could be that a building type that HSBC does not lend for, such as single-skin constructions or a British steel frame, was discovered or that the land on which the property is located is contaminated.

Although HSBC covers many property types, some require a specialist lender. Our brokers know which lenders to contact.

• A guarantor is required

Guarantor Mortgages can be a great way to help young people get on the property ladder. It may be possible to obtain a mortgage without any deposit if you have a parent, a spouse, or another family member willing to give up their home or savings to pay the debt.

The problem is that HSBC does not offer these products. They will refuse to answer any inquiry about a mortgage with family support.

• Other issues

We are still able to help you save your home-buying plans. It doesn’t matter whether you were declined for reasons not listed here. There are many reasons why HSBC may reject a mortgage application. These could be anything from an administrative error to an underwriter reporting history that they have seen excessive gambling.

The good news is that brokers with whom we work don’t discriminate and can potentially offer you a rescue plan regardless of why HSBC rejected your application. Talking to them before you submit a re-application could make the difference between approval or rejection, regardless of the circumstances.

Talk to a broker that specialises in the revival of declined mortgage applications with HSBC

You can increase your chances of getting a mortgage by finding the right broker who specialises in helping customers whose high-street lenders have declined.

Mortgage brokers will help you negotiate the best outcome and lead the appeals against HSBC’s decision. Your mortgage advisor may be able to help you find a better deal with another lender.

Our free broker matching service will match you with the best mortgage expert to help you convert HSBC’s rejection into a mortgage promise. We’ll help you find the right advisor for you by calling or making an enquiry online.

Refused HSBC mortgage FAQs

Is there a time frame for an HSBC Mortgage?

After you submit your mortgage application, HSBC will conduct a valuation and start the underwriting process. It usually takes around two weeks for the process to be completed. However, if your mortgage application is more complex than usual due to bad credit, this might take longer.

What do I do if my HSBC Mortgage Application has been delayed?

This doesn’t mean that they will reject your application. It’s not uncommon for mortgage applications to have the finer points checked, especially if they involve a customer with poor credit or a unique property type.

You can always reach out to HSBC to get an update. A broker can also provide professional advice and interpret the information that HSBC has given you. They will let you know the full consequences of any delays.

If you have a delayed mortgage application, this is a great opportunity to talk to a broker to ensure that the product is being offered as it is. A broker may be able to find an alternative lender if HSBC takes too long or time is critical.

What does it mean if my HSBC Mortgage status is ready for offer’?

This is a sign that HSBC is preparing a binding, formal offer to you after approving the mortgage application. You can still pause and speak with a broker to find out if the offer HSBC has for you is the best.

Unless otherwise stated, HSBC mortgages are generally valid for six months.

What does it mean if HSBC sends my mortgage manual referral?

This means that HSBC has moved your mortgage application to the underwriting stage. Here, additional credit checks will take effect, and all information will be cross-checked. The lender’s automated systems might not be able to determine your eligibility if the checks are done manually.

It’s usually nothing to be concerned about. However, it doesn’t necessarily mean that HSBC will reject you. They will double-check that the HSBC product is right for you.

Is HSBC a strict lender of mortgages?

Like all high-street mortgage lenders, HSBC will typically take a strict stance towards applications that do not meet their lending criteria. Borrowers with “severe” types of credit are frequently rejected. Self-employed individuals without sufficient income proof are also often turned down.

Remember that a rejection by HSBC for any reason should not mean the end of your mortgage plans.

There are specialist lenders available for customers whom HSBC does not have the flexibility to serve, and a mortgage broker with an existing relationship with HSBC may be able to negotiate on your behalf.

Contact us today to speak with specialist brokers free of charge with no obligation.