Mortgage rejected at last minute - now what?

GMS

The 'silly' rule should have been picked up by the 'adviser' at HSBC.

If it was a 50% LTV application you may have found that the 'silly' rule could be overridden.

When lenders offer the cheapest rates they get the most applications. They cannot lend to everybody so they will pick which ones. Which would you take a risk on, the 90% or the 50% deal?

Thrugelmir

AndyLiverpoolFC wrote: »

just this silly "no further borrowing for 12mths"

Maybe not so silly.........

to consolidate debt - was taken out

So you've consolidated debt a short time ago, and now wish to remortgage to refinance that debt to a cheaper rate of interest and pay it off over an even longer period.

Banks are in the business of making money, and underwriters assessing the risk attaching to their customers.

As GMS says lenders can cherry pick their customers. Not that HSBC ever has not been anything less than strict..

getmore4less

Aug 10 consolidation loan with HSBC how much?
What were you consolidating how long had that been building up?
This might be why there is a restriction.


2*£9k car loans (when were these taken out)

any CC debt not paid off in full every month?

now a £200k loan 90%LTV ( to include consolidation of the HDBC loan)
How much is your current mortgage?

Total borrowings £218 @ £64k 3.4 multiple so not too bad


Time line when looked at might look like you are increacing your debt faster than you have shown an ability to pay.

AndyLiverpoolFC

Thrugelmir wrote: »

Maybe not so silly.........



So you've consolidated debt a short time ago, and now wish to remortgage to refinance that debt to a cheaper rate of interest and pay it off over an even longer period.
.

We're not consolidating that loan into our mortgage. Simply paying it off in full with the equity from our sold property.

Conrad

Andy - lots of people and newspapers have been outraged that Banks lend to people who already have some existing debt - all the time I hear people say "it's outrageous, lending people more debt when they already had some, when are the Banks going to be made to stop".

This is the problem with that bwhole DailyMail screaming headline culture, when Banks start doing what the media want, then people like yourself end up getting declined.

Similarly, interest only is suitable for some - lets say a 60 year old getting divorced who needs lower payments while he adjusts, but good old Vince Cable and the Daily Mail do not understand these relaities and have been calling for an end to it so yet again more people will suffer because of the ignorance of those that make the rules. Less than 1 ever get repo'd but all these new rules will ensure millions will never even get the chance to buy - how is that fair in the round?

Senior_Paper_Monitor

Spot on post Conrad ! The media driven knee jerk legislating going on at the moment is going to have a huge impact on perfectly acceptable (in my opinion) mortgage clients and their options - hopefully the Housing Minister's comments yesterday concerning MMR mean that the Government may just be realising what is happening and the future impact on the economy.

getmore4less

AndyLiverpoolFC wrote: »

We're not consolidating that loan into our mortgage. Simply paying it off in full with the equity from our sold property.

Which required higher lending at 90% LTV because you have a reduced deposit.

Thats consolidation.

Thrugelmir

AndyLiverpoolFC wrote: »

We're not consolidating that loan into our mortgage. Simply paying it off in full with the equity from our sold property.

Credit card consolidated into loan.

Loan repaid with sale of house.

New mortgage increased to cover equity used to repay debt.

Smoke and mirrors.

Nothing wrong in what you doing. Trouble is old fashioned banks like the HSBC ( Far Eastern Owned). Don't play by the easy credit rules.