HSBC declined equity release need advice

herbiesjp

Get straight to a true whole of market broker and get them to look at this for you.

As I stated in a previous thread, there are plenty lenders that will consider this for you

Don't be scared of brokers, as the vast majority are good, and care about their clients

benjo

I understand where you are coming from, that if you pay off your CC's with an increased mortgage then surely HSBC can see that your monthly outgoings will fall - seems a really simple thing for them to understand.......

But what is to stop you getting the increased mortgage, paying off the CC's then going out on a spending spree to the tune of 47k on your now fully paid up CC's? there is absolutely nothing to stop you doing that and maybe that is where the concern lies. You have run up 47k in credit card debt - what evidence can you show a lender that you wont do it again? Im not suggesting for one moment that you would, just poiniting out what HSBC might think.

Lets say you did do that....

Assuming a rate over the full 9 year period of 5% (unlikely but possible)...£1266 per month
Assuming a rate of 15% paying a minimum 2% of the balance your payments would start at £940 per month (paying around £8 per month from the capital) - by the way, this will take you 57 years to pay off!!!!!!!!!!!!

Total outgoings on mortgage and cards alone £2200

Monthly income before deductions (very approximately) £3082

IF this is what HBSC fears might happen then you can fully understand why they said no - simply put your finances would be stretched to the absolute limit, with around 1k disposable income per month to cover council tax, car tax, insurances, food, fuel and 3 children I think it would be hard to service your mortgage and survive.

There is plenty of great advice on the credit card forum and the money saving forums that might help you manage your current finances if you are unable to secure further lending against your home.

Goodluck

FraudBuster

From the information given, it appears that HSBC are fulfilling their commitment to responsible lending.

Houses can no longer be used as cash machines.