am i getting ripped off by hsbc

dpws

had a fixed rate 97k mort with hsbc for 8yrs, 25 yr period, when fixed finished automatically went onto tracker for lifetime of 1% above boe rate. great i thought!

house value of £275,000, so only 40% ltv, guarenteed earnings £40k, applied for extra mortgage of 15k fixed rate , repayment of £110/month to pay off some loans etc, but got refused. then offered personal loan of 15k over 8 yrs, repayments of £260 per month.

now thinking of moving all my dealings away , ie current account, mortgage
or am i overreacting?

is there any routes for appealing to them.

was refused on the grounds of affordability, sounds daft to me when they expect me to repay £260 a month rather than £110 a month.

have worked out that with the £110 paymnt taken into account i have around £700 left over in my account each month.

your thoughts please, what i should do next.

Wutang_2

You can appeal - or you can speak to a whole of the whole market mortgage adviser to see other options.

Trollfever

Turning unsecured debt into secured debt is not normally advised.

Check out the Debt Free Wannabee Board.



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firesidemaid

presumably you are saving quite a lot in interest per month with the much lower interest rate? could you use that money saved per month to throw at your other debts and pay them off asap - that would also then cost you nothing in interest.

you have a very good mortgage rate. i also felt like you and moved all my business to other banks, and the grass isn't always greener.

also, remember, that each mortgage, loan applied for etc leavs a footprint on your credit report.

again, depending on your age, could you ask to extend the term of your mortgage instead? this would have the same effect of lowering the monthly payments, freeing up even more money to chuck at your debts each month.