Moving House and Further advance with HSBC

Mercury22

Can anyone help or offer any advice please?

I have a sole mortgage with HSBC. I'm moving and require a further advance.

My current house and the new house, mortgage etc are all in my name and I have no 'financial connection' with my wife.

I recently discovered that my wife has run up a £7000 debt on a First Direct credit card which she cannot afford to repay. She is negotiationg how to repay, although First Direct have so far refused her offers.

Although this her her sole debt and to date has not been referred to a credit agency, could HSBC in connection with my mortgage application access information about my wife's credit card default and take this into account as First Direct are part of HSBC?

I'm also on a very good deal with my existing mortgage (0.99% above base lifetime tracker) and got the feeling that HSBC would like me to change my deal to something more profitable for them. Obviously they know that if they refuse the further advance I will have no option but to re-mortgage and they will be able to get rid of my existing deal.

I maybe being cynical but wondered if anyone else on a good deal had been refused a further advance without reasonable grounds?

Cannon_Fodder

Mercury22 wrote: »

I have no 'financial connection' with my wife.

Being married is a financial connection.

http://forums.moneysavingexpert.com/showthread.html?t=1743579


If the debt is defaulted on, technically the house could end up with a charge on it, afaik.

picardygirl

Mercury22 wrote: »

I'm also on a very good deal with my existing mortgage (0.99% above base lifetime tracker) and got the feeling that HSBC would like me to change my deal to something more profitable for them. Obviously they know that if they refuse the further advance I will have no option but to re-mortgage and they will be able to get rid of my existing deal.

Is the existing deal portable?

Mercury22

Being married is NOT a financial connection, The national debt line have confirmed this. A financial connection is created when you hold something in joint names eg mortgage, bank account etc.

Mercury22

Yes the existing deal is portable so obviously I want to keep it. But if HSBC refuse the further advance I have no option but to remortgage elsewhere.

picardygirl

I'm certainly no expert, and I'm sure one will be along in a minute, but dont you require an entirely new mortgage (whether that be a ported product or not), not a further advance?

Cannon_Fodder

I think Conrad is a pretty good source of what the Lenders think.
http://forums.moneysavingexpert.com/showpost.html?p=22358815&postcount=28

Conrad wrote: »

Lindy, a lot of people are missing the fundamental reason for the decline, so I will try to shed some light on the matter.

The reason for the decline is 'standard practice'. Lenders deem that a married spouse has a SIGNIFICANT influence on the household finances.

Nothing can circumvent or attenuate this principle.

Having said this, there are potential lenders that might help, but you need to approach this in the following manner;

1) Recognise an AGREEMENT IN PRINCIPLE is worthless

2) Know that your case needs individual underwriting by a Human underwriter. A computer generated AIP will have assumptions built into the programme. For example the software will 'assume' you are splitting up and can prove this if asked.

A decent experienced broker will be able to help you further - but if he's fees free, you need to question whether he will want to sit on the phone for hours to underwriters - would you, knowing there is only a chance of being paid at end?

VIGILANT22

When a lender runs a credit check it will come up with "associated adverse credit at this address"....how each lender then deals with it varies....

Mercury22

VIGILANT22 wrote: »

When a lender runs a credit check it will come up with "associated adverse credit at this address"....how each lender then deals with it varies....

That's how it used to work but apparently not anymore. Credit references are personal and a cross reference on the address would only appear if there was a 'financial connection'. I have checked my own credit reference and there is no cross reference to my wife in any shape or form.

The national debt line have assured me on 3 occassions that a credit search on me will not link to my wife (would only link if a financial connection existed).

I'm not worried about a credit check on me I'm more concerned about whether the underwriters at HSBC would have access to account information at First Direct AND search through an address rather than just searching the individual.

Mercury22

picardygirl wrote: »

I'm certainly no expert, and I'm sure one will be along in a minute, but dont you require an entirely new mortgage (whether that be a ported product or not), not a further advance?

You can keep your existing deal on the amount ported but the further advance would be on new terms.

VIGILANT22

Mercury22 wrote: »

That's how it used to work but apparently not anymore. Credit references are personal and a cross reference on the address would only appear if there was a 'financial connection'. I have checked my own credit reference and there is no cross reference to my wife in any shape or form.

The national debt line have assured me on 3 occassions that a credit search on me will not link to my wife (would only link if a financial connection existed).

I'm not worried about a credit check on me I'm more concerned about whether the underwriters at HSBC would have access to account information at First Direct AND search through an address rather than just searching the individual.

The situation was.........

Mortgage in joint name/no defaults/late payments on mortgage
Wife clean credit history
Husband defaults with credit cards
Wife applies in her name only for a remortgage as she & husband splitting up , she is informed decision pending associated adverse credit. This was in 2009 and the lender was the woolwich.

****

This message re adverse at the address..did not show up on experian/equifax report done by individual........however this message was on the woolich dip........