HSBC secured loan - dont understand this

Ashingtonian

I switched my mortgage to HSBC late last year, 52k borrowed against a value of 105k, was excepted no problem.

I contacted them today looking to add another 10k to the mortgage, they said it would have to be in the form of a secured loan, which was fine as they were offering 2.29% interest rate. Went into the local branch, got an illustration of the cost (£93 a week over 10 years) which I was planning to overpay on anyway.

Given the number to ring by the branch to apply, lady takes all my details, income/outgoings etc......put me on hold whilst she got a decision....came back yes that fine, we will send forms out in the post to sign etc.

However, half an hour later the same lady rang back...Sorry but I have not been accepted after all, not enough leeway in the income/outgoings figures I gave. In a state of mild shock I said OK, no problem and that was that.

Having had time to think about it, I just cannot understand why they changed their mind. Since my mortgage started with them my income has increased by £50 a month and I was looking to borrow an extra £93 a month.....so a difference of £43 extra, and I would still have £100-£200 a month spare after all my outgoings.

Obviously I could go elsewhere, but I was wondering if it is worth getting back in touch to plead my case with them.....especially as they agreed but then changed their minds half an hour later! I was not hiding anything from them.......

Of course it has also left a search on my credit file, which could harm any applications elsewhere in the near future:mad:

USM

£100 - £200 spare after outgoings? Does that include saving a decent chunk for unexpected costs?

That's a reasonably small amount of money to have left at the end of the month so they are probably being very ethical in drawing the line here.

CLAPTON

presumably, with 100-200 spare each month you have a reasonable amount of savings.. can't you use these for whatever you wanted tyhe 10k for?