What Do I Do If I Have Been Declined by HSBC

Because you have been declined by HSBC doesn't mean that you will not be able to get a mortgage.  HSBC have some of the tightest mortgage underwriting and in the present economic situation can afford to pick and choose you they lend to. 

Your defaults are not going to make it easy for you to get a mortgage, especially at 90% loan to value (LTV), but as they were over 2 years ago, I think there is a chance of success with a smaller building society.  A provincial building society is unlikely to depend on an automated credit score when making the decision to lend or not and will be able to consider any mitigating circumstances and changes to your situation which mean it is unlikely you will find yourself in the same position as before.  There are specialist lenders who price their products to reflect any poor credit you have previously had making them more expensive, but they do not lend up to 90% LTV and so this avenue is not currently open to you. 

There are several steps you can take to explore alternative options: 

1. Understand the reason - contact HSBC to understand the reason for the decline. They should be able to provide you with specific feedback or reasons why your application was not approved. Understanding the factors that led to the decline can help you address any issues or improve your application for future attempts  
2. Review your finances - take a close look at your financial situation, including your income, expenses, credit history, and any outstanding debts. Consider whether there are any areas that need improvement or any steps you can take to strengthen your financial position  
3. Consider alternative lenders - just because you've been declined by HSBC doesn't mean you won't be able to secure a mortgage elsewhere. Explore other lenders and mortgage brokers who may have different eligibility criteria or be more flexible in their lending decisions  
4. Seek professional advice - speak with a mortgage broker like John Charcol, we specialise in helping individuals who have been declined for mortgages. We can provide personalised guidance, help you understand your options, and assist you in finding alternative solutions  
5. Address any issues - if there were specific reasons for the decline, take steps to address them before reapplying. This could involve paying off outstanding debts, improving your credit score, or providing additional documentation to support your application  
6. Build a stronger application - take the time to strengthen your mortgage application by increasing your deposit, improving your credit score, and ensuring that all your financial documentation is accurate and up to date  
7. Be patient and persistent - securing a mortgage can be a complex process, and it may take time to find the right lender and product for your needs. Be patient and persistent in your search, and don't hesitate to explore multiple options until you find the right fit  

Remember that being declined for a mortgage is not necessarily a reflection of your financial status or creditworthiness. By taking proactive steps and exploring alternative options, you can increase your chances of securing a mortgage that meets your needs. 

We can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0330 433 2927 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage for your situation.