HSBC UK Bank Plc · DRN-6001280

The complaint Mrs H is unhappy with how HSBC UK Bank Plc dealt with an application for a new fixed rate product. She said it was declined with no reason, and they didn’t contact her again to discuss the option of a new interest rate. What happened Mrs H has a joint mortgage with her husband, but they are now separated, and Mrs H requested a new fixed rate online on 23 April 2024. This rate had a booking fee of £999 which she selected to add to the loan. Mrs H is unhappy that HSBC cancelled this rate and later found out that they did so because her husband didn’t consent to it. She contacted HSBC again in June 2025 and after she spoke to a mortgage adviser, it was agreed that she could take out a tracker product with just her consent which was to start from 4 August 2025. There was a delay in the process, so HSBC agreed to backdate the new interest rate to 1 July 2025 and they offered Mrs H £100 to acknowledge this. Mrs H wants this rate to be backdated to July 2024 as she believes that HSBC should have told her that she could have had the tracker rate then. HSBC didn’t agree. They said that Mrs H declared online to having both joint parties’ consent for the original fixed rate and when the other party contacted them to dispute it, they cancelled the application. They said they refunded the booking fee to Mrs H and sent out letters to the address they held on the system letting both parties know the action they had taken. They said they didn’t hear back from Mrs H until June 2025. So they didn’t think they had done anything wrong. Mrs H brought the complaint to the Financial Ombudsman Service where it was looked at by one of our investigators who was satisfied that HSBC had acted fairly. Mrs H responded and in summary made the following comment: • HSBC didn’t explain to Mrs H why the request for a new rate was declined. She only found out later that her husband had refused it. • Mrs H believes that HSBC should have offered a solution like a sole request for a new rate earlier than they did. • She would like the rate backdated to when she had originally asked for the fixed rate. She said she didn’t ask for it earlier because she didn’t know it could be done. As Mrs H disagreed with the investigator, she asked for the complaint to be reviewed by an Ombudsman, so it’s been passed to me to decide. What I’ve decided – and why I’ve considered all the available evidence and arguments to decide what’s fair and reasonable in the circumstances of this complaint.

-- 1 of 3 --

Having looked at everything carefully, I agree with the outcome that has been reached by the investigator for largely the same reasons. We have agreed to look at this complaint with Mrs H’s consent only as this is about the impact this situation has had on her. So no comments will be made about the other party other than what is related to this particular complaint. I understand that Mrs H wanted a new fixed rate and applied for this online in July 2024. As it’s a joint mortgage, she did so on the understanding that both parties agreed to it. HSBC were later contacted by the other party who said they didn’t agree. HSBC cancelled the fixed rate and refunded the booking fee to Mrs H which was the right thing to do. They also wrote to the address they had on file to notify both parties what actions they had taken. This is what we would have expected them to do. In that letter, HSBC said Mrs H could contact HSBC to discuss any options with them but she didn’t contact them again until June 2025. An appointment was made with a mortgage adviser and they agreed for Mrs H to take out a tracker product which didn’t incur any early repayment charges with just her consent. This process took a while to complete which HSBC accepted. They offered to backdate the rate to 1 July 2025 rather than let it start from August 2025 and they offered Mrs H £100 to recognise this. Mrs H believes that HSBC should have offered this tracker product to her sooner when they cancelled the interest rate. While I understand the argument that Mrs H is making here, I don’t agree with it. HSBC wrote to Mrs H letting her know they had cancelled the fixed rate and gave her the choice to contact them to discuss other options – but she didn’t do this until nearly a year later. Had she of done so, then HSBC could have discussed this option with her at that time which is what they did when she made contact with them in June 2025 after having spoken with a mortgage adviser. The fixed rate that Mrs H originally applied for was online, so she hadn’t spoken to a mortgage adviser and it’s not something that would be available to her unless she spoke to someone. I think HSBC have done the right thing by offering this tracker product to Mrs H and I do think they did the right thing by backdating it to July 2025 taking into account the few weeks delay in sorting it out. Like our investigator said, it’s not for HSBC to be proactive in this situation and it’s up to consumers to request a new interest rate if they need one. Like I said, had Mrs H of spoken to a mortgage adviser in July 2024 then I’m confident this option would have been discussed. While I’m sorry to disappoint Mrs H, I am satisfied that HSBC have acted fairly and reasonably in the circumstances of this complaint, so I won’t be asking them to do anything further. My final decision For the reasons given above, I don’t uphold this complaint.

-- 2 of 3 --

Under the rules of the Financial Ombudsman Service, I’m required to ask Mrs H to accept or reject my decision before 20 April 2026. Maria Drury Ombudsman

-- 3 of 3 --