You are here: Home - Mortgages -

HSBC rebuked after rejecting mortgage on age grounds

0
Written by: Adam Williams
14/04/2015
Mortgage lender HSBC has been reprimanded after denying a couple in their 40s a loan on the grounds of age.

The Financial Ombudsman Service (FOS) ruled against the bank for age discrimination after it tuned down the mortgage application as one of the couple would be over 65 at the end of the term.

A report in the Sunday Times said the couple were in their forties and had applied for a joint £250,000 interest-only mortgage and planned to repay over an 18-year term.

Following this decision the couple made an official complaint to FOS.

The ombudsman reprimanded the bank and described its decision process as “inadequate” and “flawed”.
“The bank relied on untested assumptions, stereotypes or generalisations in respect of age,” the ruling in favour of the couple stated.

HSBC has been told to pay compensation of £500 to the couple and must also reconsider the application.
This is the first time an age-related complaint has been upheld by the ombudsman.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week