Being declined by HSBC is frustrating, but it doesn’t automatically mean you can’t get a mortgage elsewhere.
HSBC’s appetite can be tight, particularly where there are defaults within the last few years and you’re looking at 90% loan-to-value. At that level, many high street lenders lean heavily on credit scoring and automated decisioning, which can be unforgiving even when the broader story is reasonable.
Why HSBC may have said no
The main issue here is likely the three defaults from around 2.5 years ago, rather than your current income or the size of the mortgage.
It’s also worth saying this clearly: your Experian score (871) is useful context, but lenders do not use that number. Each lender has its own internal scoring and criteria, and defaults often carry more weight than the headline score suggests.
Is a mortgage still possible with defaults?
Potentially, yes. But it’s more case-specific.
At 90% LTV, your lender pool will be smaller. Some lenders will want defaults to be older, satisfied, and followed by clean conduct. Others may still decline on policy, regardless of the reason.
Where you may have a better chance is with lenders that will look beyond a simple pass/fail score and consider:
- how long ago the defaults occurred
- whether they are now settled
- how your accounts have been conducted since
- whether there were genuine mitigating circumstances (such as illness)
- how stable your income and outgoings look today
What you can do to improve your chances
1) Get the detail right before you apply again
Before another application goes in, it helps to see exactly what’s on file across the main credit reference agencies and confirm:
- default dates
- whether they are marked as satisfied
- whether any balances remain
- whether there are any linked issues (late payments, overdraft markers, payday lending)
This avoids wasting an application on a lender that will automatically decline.
2) Consider deposit and loan size as your main levers
With adverse credit, the deposit is often the difference between “no” and “possible”.
If you can move from 90% LTV towards 85% LTV, your options can improve. Even if you still need a specialist lender initially, pricing and acceptance can look more realistic.
3) Be careful with multiple applications
A string of applications in a short period can start to work against you.
The smarter route is to place it with a lender whose criteria fits your exact profile, rather than “trying your luck” across the market.
What a broker can change here
This is exactly the type of case where placement matters.
A whole-of-market broker can help you avoid lenders that will decline on policy, and instead target those that will assess the full story properly. That includes positioning the application, presenting the illness context cleanly, and selecting a lender whose underwriting approach matches your profile.
It can also help you decide whether your best route is:
- a lender who may accept you now at 90% LTV, or
- waiting a little longer / increasing the deposit to access a wider, cheaper range
Next steps
If you want to move this forward sensibly, we’d typically start by looking at the defaults in detail and then mapping lender options to:
- your deposit and target LTV
- whether the defaults are satisfied and how recent they are
- your current affordability on a stressed rate
We can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 023 8235 2300 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.
