why cant I get a new mortgage from HSBC or any other lender it appears?

skintnurse79

My mortgage needs are a little more complicated than normal but they are not difficult to grasp so why does no one want to lend me any money for a new mortgage.
I brought 64.9% of my current property from the council in 2002 with a legal charge on the property of 34.1% to be paid to the council if I sold the property.
I have applied to the council to pay off there remaining share which they have agreed and given me a price of £58,000.
based on a current market value of £200,000.

simple so far right..

so I applied for a morgage at my current bank where I cuurently has a £45k mortgage for the other 64% that I was originally paying.

They advised me to apply for a 127k mortgage including my current 45k, the new 58k and to cover a car loan 14k and personal loan 7k which I did

they now have refused for 3 reasons.
1. I cannot prove my income ..... I have all my wage slips, a letter on headed paper from payroll confirming my last 3 years P60s but I do not have the actual p60 to 2008/9 and 2010/11 as I have mislaid them (my bad i know)

2. they feel I am over indebted, i have over 65% equity, I have no other loans, cc's or any other debt, i have never missed a payment for anything and have a good credit rating. The new mortgage would bring my existing monthly cost of mortgage, loan and car loan of £1070 a month to £590 a month so I can afford it

plus I earn over 41k a year and i have my own buisness which makes 30k that I havent included as i have not completed my 1st year of tax returns yet as I only started 6 months ago. (which i have not included in application)

3. I have too many credit cards which yes I have about 40k in total but all bar 1 is £0 balance which has 6k on a 0% which I am happy to pay off immediatly if it would help.

so why cant i get a mortgage???

I have offered to pay off the car loan with savings and cancel all the credit card accounts clearing the balance on the remaining one, but they say this will make no difference.

:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:
wouldnt mind but in 5 years should be able to clear the mortage with overpayments so why am i such a risk????

any advice appreciated thank you

opinions4u

See a reputable local mortgage broker.

ACG

Firstly, you have £40k available to you...close some of those cards, that should make a start.
Secondly, HSBC have the strictest and strangest criteria....have a lookt hrough these forums.
Just because HSBC and First Direct (who have the lowest rates available) decline people for weird and wonderful reasons doesnt mean every lender will.

Who else has declined you?

Dave_Ham

Firstly, relax. I can understand why this is frustrating, although it is likely that your choice of lender is the issue rather than your circumstances.

Just to validate this; type in HSBC mortgage in the search forum on the top right and have a read through some of the threads - I think you will see my point.

Not sure what other lenders you have tried; First Direct?, although from what you have said I would have thought this should be a piece of cake.

Save the stress, go to a broker and this should not be a headache at all. You have already done all the leg work speaking to the council etc.

Honestly, you should be fine here...

All the best.

skintnurse79

yep tried first direct and said no, Nat west said they dont participate in shared ownership schemes which despite me informing them it is not and that I own the property with a legal charge over the property from the council.
I am worried that too many failed applications will go against my credit rating.

will look for a broker but not sure where to being other than
G:T:Tgle!

thanks for the quick replies its lovely to hear its not just me that HSBC dont like. I was started to feel paranoid it had something to do with the 5k i claimed from them last year for PPI mis-selling

Dave_Ham

No its not just you - do not worry...

The person at Natwest probably just didnt understand what you are/were trying to do.

Would always try and get a local recommendation from friends and family. All too often when on google, you see the people who spend the most, have big overheads and then usually bigger costs.

It is imperative you get a whole of market or independent advisor and not one tied (especially not through an Estate Agency) obviously just my opinion...

Good luck - I am confident you will get this sorted...



Dave