HSBC Mortgage contract

speedbird1973

Hi there,

I'm remortgaging with First Direct. The mortgage contract has come through to be signed. One of the clauses states that any debt I owe now or in the future is automatically secured on my house (ok ok their house!). So if I default on a credit card they can reposses my house.

Is this common amongst lenders? i can't believe it's easy for them to enforce.

TEDDYRUKSPIN

This not normal. Credit card and any loans unless secured, have no right against the property.

You might have read it wrong.

opinions4u

speedbird1973 wrote: »

I'm remortgaging with First Direct. The mortgage contract has come through to be signed. One of the clauses states that any debt I owe now or in the future is automatically secured on my house (ok ok their house!). So if I default on a credit card they can reposses my house.

Please can you post the exact wording that they are asking you to agree to. You have provided us with your interpretation - which may be misleading.

Is this common amongst lenders? i can't believe it's easy for them to enforce.

I really should know but I don't. If it's some sort of paragraph that makes it easier for them to obtain a charging order (a court order that turns unsecured debt in to secured debt) then it wouldn't surprise me.

TEDDYRUKSPIN wrote: »

Credit card and any loans unless secured, have no right against the property.

Unless a court has issued a charging order against the borrower effectively turning poorly maintained unsecured credit in to a secured debt.

speedbird1973

This is the clause:

2. The Debt which is secured on the property and other assests

The Debt is all money and liabilities whatever, whenever and however incurred where now, or in the future due from the bank.

This includes, but is not limited to

a) Overdrafts, personal and other loans or facilities and further advances of money

is the relevant bit HOWEVER!!!

the last paragraph goes on to say

"The Debt is not any money and liabilities arising under a regulated consumer credit agreement" etc etc

So I've answered my own question I believe! I understand charging orders a required, to "secure" traditional unsecured debt, I just wondered if this was a clause effectively make any HSBC debt part of the the first charge. Doesn't appear to be the case!

thanks for helping out