In this brief guide, we are going to discuss what HSBC manual referral means.

What does HSBC manual referral mean?

A HSBC manual referral simply means that your mortgage or loan or credit card application has been referred for manual underwriting.

This simply means that for whatever reason the automated decision-making system may have not been able to determine your affordability for the credit product and hence your application was directed to manual underwriting.

What is manual underwriting?

Manual underwriting is when a person evaluated a credit application rather than an automated decision-making system.

Manual underwriting is usually beneficial to those with complex mortgage cases, those with bad credit or those with complex incomes.

If you have had a HSBC manual referral then you should not worry so much about this.

The mortgage underwriter or loan underwriter looking over your mortgage case will likely contact you if they need further documents or clarification on anything you submitted in your credit application.

If you were applying for a HSBC mortgage and you have been directed to manual referring then you may naturally be worried but with a good mortgage broker you should receive suitable advice and still be able to get a mortgage with HSBC or another mortgage lender.

Use a mortgage broker

You may want to consider using an independent mortgage broker to get a mortgage.

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.

This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. 

This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your mortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month.

It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.

Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.

They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.

In this brief guide, we discussed what HSBC manual referral means.

If you have any questions or comments please let us know.

If you are in need of advice about your money and you live in the UK then you may contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.