HBOS Mortgage refused extra lending. Other Options?

Simon_R_4

Previously had excellent relationship with Bank of Scotland (no missed payments since mortgage taken out 12 years ago) They were always happy to help with additional borrowing. Recently applied for more and we were turned down due to affordability. In fact they said that under their new criteria our current outstanding mortgage balance was £10,000 over what they could now lend us.
We wanted to borrow another £30,000 to consolidate debts which would have taken us to an 80% loan to value.

My question is this. Do you think they would consider extending us the extra funds were my Dad (Who is well off) to act as guarantor for the additional £30,000 borrowing. Or is this just not the sort of thing that banks will consider. We would have considered moving lender but for the £5000 early redemption fee that we would have to swallow due to the deal we are currently on.

Thanks to all who share their thoughts.
S.

Dave_Ham

Potentially they would consider this yes, but there are many variables to consider...

If not, there are many other options and other banks would be an option although typically Halifx/BOS are amongst the most flexible..

Best of luck...

Thrugelmir

Simon_R wrote: »

We wanted to borrow another £30,000 to consolidate debts

Lenders are unlikely to be interested in debt consolidation as a purpose of funds for remortgaging.

Suggest you visit the Debt Free Wannabe board for advice and support on tackling your issues head on.

Simon_gloster

Simon_R wrote: »

Previously had excellent relationship with Bank of Scotland (no missed payments since mortgage taken out 12 years ago) They were always happy to help with additional borrowing. Recently applied for more and we were turned down due to affordability. In fact they said that under their new criteria our current outstanding mortgage balance was £10,000 over what they could now lend us.
We wanted to borrow another £30,000 to consolidate debts which would have taken us to an 80% loan to value.

My question is this. Do you think they would consider extending us the extra funds were my Dad (Who is well off) to act as guarantor for the additional £30,000 borrowing. Or is this just not the sort of thing that banks will consider. We would have considered moving lender but for the £5000 early redemption fee that we would have to swallow due to the deal we are currently on.

Thanks to all who share their thoughts.
S.

The primary purpose of a gaurantor is to allow those with short term career progression to buy their first home. The guarantor is to then come off in two to three years.


Any bank in lloyds banking group or anywhere else for that matter are likely to get near what you need. Halifax,bos and c&g can offer more than enough normally.

If BOS say no, you'll have to pay the penalty for spending beyond your means it seems.

Simon_R_4

Wow thanks to those who gave constructive advice. To those who comment merely to judge me, without any idea of why exactly I'm in the situation I am. Well you must have a surfeit of time and a paucity of wit & compassion. How sad.

Thrugelmir

Simon_R wrote: »

Wow thanks to those who gave constructive advice. To those who comment merely to judge me, without any idea of why exactly I'm in the situation I am. Well you must have a surfeit of time and a paucity of wit & compassion. How sad.

Sorry if I burst your bubble. My post was factual and wasn't in the slightest way judgemental. I merely pointed you in the direction of a very useful part of the MSE forum.

The_J

I saw the thread title and summary, saw that Thrugelmir had replied and said to myself "I bet he is really judgemental and provided no constructive mortgage advice or incorrect advice".

I was right but hey, at least you got three thanks eh?

Thrugelmir wrote: »

Lenders are unlikely to be interested in debt consolidation as a purpose of funds for remortgaging.

This. Is total BS. Stop commenting on mortgages you are clearly not qualified. Go provide moral support on the debt free wannabe forum, I bet they are masochists and love being criticised.

Thrugelmir

The_J wrote: »

This. Is total BS. Stop commenting on mortgages you are clearly not qualified. Go provide moral support on the debt free wannabe forum, I bet they are masochists and love being criticised.

Appear that your the one being judgemental.

Just put me on your ignore list. Then you won't have to read my observations.

If you want to be constructive, advise the OP where he can obtain the finance he is seeking. A much better way of participating in the forum.