HSBC caused stamp duty rise
I have a small portfolio of buy-to-let properties, which I have held and managed for 15 years. We have moved recently and I have been selling properties at the previous location and buying others that are nearer. I saw an ideal one, which required an £84,000 mortgage.
I approached HSBC, which I have been with for 65 years. On our first meeting I raised the point that the fact that I am 83 might be a problem.
The HSBC mortgage manager assured me that the bank did not have any barriers because of age and proceeded to interview me regarding my financial position. DAVID EDGINGTON, DORSET
At three meetings you were assured that affordability was calculated on the income the property would generate. So you instructed your solicitor about the sale and reassured the estate agent. However, the mortgage was then turned down on the grounds that you would not be able to maintain the property.
HSBC then said that the process had not been made clear to you and a couple of bottles of wine were sent to apologise. Clearly this was inadequate.
You found a mortgage elsewhere but the delay meant you missed the deadline to avoid a hefty rise in stamp duty on buyto-let properties. This cost you £4,270.
My involvement led to HSBC paying you the £4,270 stamp duty and adding £500 for the inconvenience.
The bank now says the application was incorrectly declined. It says age is not a consideration when applying for a buy-to-let mortgage as affordability is based on the income generated from the rental of the property.
However, all residential mortgage applications that take a customer beyond the age of 75 are referred to its underwriter and reviewed on a case-by-case basis.
You would like to stress that you are impressed that HSBC has recognised its mistakes, been prompt in dealing with your complaint, once I became involved, and generous in the settlement. readings and returned his direct debit to £86 amonth.”