HSBC declined equity release need advice

engleby

Have waited a week for HSBC underwriter to look at mortgage application only to be declined. Currently have morrtgage of £61,000 and all our bank accounts with them and have had for 21 yrs . Never defaulted any payments. House value approx £250,000 joint income of £52,000. Do have debt of cc of £47,000 and wanted to borrow money to consolidate debt. No other loans. Credit rating good. HSBC say cannot lend on basis that they would be taking on too much debt of other peoples other than their own. Not sure I fully understand. Only asking for a mortgage for remaining term which is 8 yrs 11 months which does not go beyond retirement and the repayments would have reduced our outgoings by £700 per month - this was a good solution as we need to reduce our outgoings got one child at uni another at law school and one still in school. Circumstances will get better over next few years this would have kept us going, don't want to sell. Can anyone offer me some advice re applying elsewhere or how to find a reputable broker - gutted and feeling like come to end of road.

tek-monkey

Just so I'm clear:

You owe 61k
You need an extra 47k
You need to pay this all off before retirement in approx 9 years.

Is this correct? At 5% interest you'd pay about £1250 til retirement. Maybe their concern is that you ran up a CC of 47k despite earning 52k?

_Andy_

One thread not enough?

maninthestreet

As an investor with significant amounts of my own capital invested with HSBC, I'm glad to see that they turned down this request - why should HSBC take over the risk related to this debt, even if was secured against your property? You were asking HSBC to accept that you could pay off £108K of debt in under 9 years - even with an income of 52K, that would not be an easy task.

engleby

Haven't always been earning £52k only recently gone fronm part time to full time as kids gorwn up even paying £1250 would not be probelm as in a few years can sell up and downsize and currently paying that oncc alone

tek-monkey

Is a loan less than your CC?

engleby

Yes it would be a loan would be almost half the repaymetns on cards

tek-monkey

So get a loan rather than a mortgage?

engleby

Okay but have been declined mortgage won't a debt consolidation loan homeowner loan be a problem to get too

Mrs_Bumble

I have replied on your other thread.

engleby

maninthestreet I take what you are saying but as my mortgage is currently with hsbc and has been for 21 yrs and i have a good record with them don't you think they may consider that my outgoings would be much much lower with the new amount compared to the cc payments monthly thus giving them a better guarantee of continuing to pay off mortgage without problems and LTV rate was only 45% there is over 180,00 equitry in the house at min disappointed they don't take a sympathetic view on the matter given my loyalty to them.