mortgage with HSBC after taking further loan on current HSBC mortgage

Unignedband

I recently ( 4 weeks ago) took a further loan on my mortgage with the intention of putting it as a deposit for a new place I'm buying with my boyfriend. I was granted £20,000 but, on the advice of the face to face mortgage advisor I saw initially, said, when I applied on the phone, that it was for home improvements. I haven't drawn down the loan yet but we have just had an offer accepted and I am looking at mortgage options and wondering if HSBC will look unfavourably on this loan if I apply now for another mortgage (the lifetime tracker at 80% deposit) with them?

I have a good internal score with them (83) and my boyfriend is also with them and has a reasonable history - no loans of any description or credit card debts between us, and my parents are premier customers. My boyfriend does use his overdraft every month but pays it off every month as well. As I plan to rent my current place I am also going to ask for consent to let from HSBC!

Half of me thinks my history will stand me in good stead with HSBC so they will be more lenient than other lenders, half of me thinks I should avoid over-complicating things when HSBC have so much financial info on me already and someone will a little less might be less worried about the new mortgage! Thoughts appreciated. the other option I'm looking at is the Woolwich(Barclays) tracker to fixed option.

harvey115

It would not be possible to answer for sure what the outcome would be with HSBC as they deal directly with the end client.

You can surely give it a go and as a backup stay ready to apply to a different Lender in case you are decline by HSBC.

Best of luck.

_Andy_

Unignedband wrote: »

I recently ( 4 weeks ago) took a further loan on my mortgage with the intention of putting it as a deposit for a new place I'm buying with my boyfriend. I was granted £20,000 but, on the advice of the face to face mortgage advisor I saw initially, said, when I applied on the phone, that it was for home improvements. .

Great, so fraud then. Well done.

harvey115

_Andy_ wrote: »

Great, so fraud then. Well done.

It could also be an incompetent call center adviser selecting the wrong option from their screen on the initial phone call.

_Andy_

harvey115 wrote: »

It could also be an incompetent call center adviser selecting the wrong option from their screen on the initial phone call.

Well no

"the face to face mortgage advisor I saw initially, said, when I applied on the phone, that it was for home improvements."

So the adviser was suggesting the OP made a fraudulent app. Both muppets.

harvey115

_Andy_ wrote: »

Both muppets.

hahaha for sure

Thrugelmir

Unignedband wrote: »

I am looking at mortgage options and wondering if HSBC will look unfavourably on this loan if I apply now for another mortgage (the lifetime tracker at 80% deposit) with them?

Looks very obvious from the HSBC's perspective that the transactions may well be connected.

Thrugelmir

Unignedband wrote: »

My boyfriend does use his overdraft every month but pays it off every month as well.

Getting one's salary paid in then proceeding to go back into overdraft is not paying it off.

Constant utilisation of an overdraft demonstrates a lack of financial management skills from a lenders perspective. As there's obviously no fall back if an emergency occurs and an unexpected large bill crops up.

Yorkie1

If you don't draw down the loan, can you fund the deposit anyway?

If you do draw down the loan and use it as planned for the deposit, you'll have to declare it as the source of your deposit in your new mortgage application or that is potentially fraud too.