Mortgage co asking for reason for outstanding loan

Thrugelmir wrote: »

Only an assumption but my take (with a lenders limited eyes). From your credit history 3 years ago you borrowed £10k which appears to be for debt consolidation. Since then you have amassed another £9k of debt. The lender can see its a promotional balance transfer, and that it cleared other debts. So the current position is that you now £12k of debt. Over the past 3 years you've effectively overspent by £2k.

The concern for the lender is then three fold. One that the deposit for the BTL is borrowed.

No, my unsecured debt has gone down steadily (well up and down, but heading down overall) and my deposit could be all cash (and pay off the card) but I would rather leave the card there as I think it's a great deal (0% for nearly 3 years with Virgin, thanks to MMSE). The card consolidated about 3 previous 0% cards that were approaching end of promotional offer. The loan has an early repayment penalty so I have to leave that.

So, we collectively think (I won't sue!) that just saying it was for a car, building and debt consolidation is better than just saying, eg bought a car?? :beer:
Thanks