HSBC Mortgages Grrrrrrr!!!
I just wasted an hour of my life with an HSBC Mortgage "Manager". Basically i've had my broker give me a range of mortgage options for our new house purchase, however on browsing HSBC's website they were offering 2.79% +BOEBR LifeTime Tracker and if you're a Premier Customer then the fee was only £300 which beat all other quotes hands down. (this isn't offered through brokers only direct)
So after an initial enqury last week & brief headline affordability evaluation i was booked in for an appointment at lunch today to go through the application. So i brought my last 3 years accounts and all the other guff they wanted. However HSBC have a VERY strange way of calulating affordability!
The woman said they take your salary (£7.5k) + Net Profit in the company AFTER Dividends in my case there was about £15k left each year but having taken (£40k, £46k, & £60k dividends over the past 3 years), then they averaged it over the 3 years. So in my case it came out at about £20k/year!!!
and she said the computer said they could lend me 85K!!!!
She then tried to call someone for an explanation but didn't get very far and she's going to speak to a colleague as she says it doesn't seem right.
I said to her i've be invoicing between 7-10k + VAT a month for the past 4+ years, the mortgage would be about £1600/month on repayment so its easily affordable.
It's a bit ironic as they asked me last week to also come in and have a meeting tomorrow with them as well about becoming a Premier Customer which is supposedly for high earners! I told her i hardly saw the point in keeping my Premier Customer appointment with them if they only thought they could offer me a 85k mortgage!
To say i was dumbfounded was a bit of an understatement.
Despite having "Manager" on her badge she seemed almost clueless about Ltd company operation, and was very much "Computer Says No".
Anyway i'll report back once she's contacted me again!
So after an initial enqury last week & brief headline affordability evaluation i was booked in for an appointment at lunch today to go through the application. So i brought my last 3 years accounts and all the other guff they wanted. However HSBC have a VERY strange way of calulating affordability!
The woman said they take your salary (£7.5k) + Net Profit in the company AFTER Dividends in my case there was about £15k left each year but having taken (£40k, £46k, & £60k dividends over the past 3 years), then they averaged it over the 3 years. So in my case it came out at about £20k/year!!!
and she said the computer said they could lend me 85K!!!!
She then tried to call someone for an explanation but didn't get very far and she's going to speak to a colleague as she says it doesn't seem right.
I said to her i've be invoicing between 7-10k + VAT a month for the past 4+ years, the mortgage would be about £1600/month on repayment so its easily affordable.
It's a bit ironic as they asked me last week to also come in and have a meeting tomorrow with them as well about becoming a Premier Customer which is supposedly for high earners! I told her i hardly saw the point in keeping my Premier Customer appointment with them if they only thought they could offer me a 85k mortgage!
To say i was dumbfounded was a bit of an understatement.
Despite having "Manager" on her badge she seemed almost clueless about Ltd company operation, and was very much "Computer Says No".
Anyway i'll report back once she's contacted me again!
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