Not upheld: mortgage application administration and handling; alleged unreasonable information requests complaint against HSBC Bank UK Plc

Decision detail

Summary

Mr and Mrs W complained to HSBC about the administration of their mortgage application after HSBC's solicitors required Mrs W to be added to what was initially a sole application by Mr W. The application required two amendments: one to include Mrs W and another to correct the number of BTL mortgages. HSBC requested various documentation including an overseas credit report for Mrs W, who had no social security number in their country of residence. Mr and Mrs W believed HSBC's sequential approach to information requests caused delays and that some requests, such as the overseas credit report, were unreasonable. The ombudsman found HSBC's actions were reasonable and that the approximately six-week timeline from corrected application to approval was not unreasonable given the applicants' overseas circumstances. The ombudsman upheld HSBC's offer of £75 compensation for broker documentation upload difficulties.

The Ombudsman's reasoning

The ombudsman found that HSBC's actions were reasonable given the circumstances. Once HSBC discovered the property was jointly owned, it was entitled to require Mrs W's inclusion and to request standard information for both applicants. The requirement for an overseas credit report, even if showing no facilities, was justified because there was secured borrowing on the jointly owned property in the country where they lived. The approximately six weeks from corrected application to approval was not unreasonable given the complications of applicants living abroad and the time needed to obtain Mrs W's credit information. The ombudsman noted that lenders routinely request additional information as they assess what has been provided, and this was not unusual or a cause of unreasonable delay.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website