Declined for interest only - any idea why?

bexterswell

Thrugelmir wrote: »

Have you asked the bank to revalue?

For that sum of money presumably the property has been extended. Not just kitted out with top end fixtures and fittings.

The £420k is the revaluation from the bank.

Still non the wiser as to the actual reason why (I hope hsbc tell me), but I take your points onboard that the debt and salary ratio makes me look 'irresponsible' and also that the £250 ISA is too low for repayment vehical, but I think people missed that the rest would come from a pension payout (I have a very good one that I put £1.5k per month into), so surely it's not the repayment vehical it's my debt?

My new plan is to: Switch to tracker capital repayment mortgage with HSBC. And in 3-4months apply for a interest only with another lender (or even with HSBC again), but making sure that i've
1. Cleared my overdraft (by selling my car)
2. Paid off my credit card (by selling my car)
3. Upped my ISA to £550 a month.

So the repayment vehical would be:
1. downsize
2. £550 per month ISA (evidenced for 3-4months, plus over a year of £250)
3. Pension payout (it's estimated it'll be worth over 1.5m by the time i'm 55)

My debt would be only around £8-9k on a loan.

Would doing the above make a substantial enough of a difference? I'd be selling my car to pay off the credit card + overdraft, I'd rather not but i don't want to be stuck paying circa £1700 per month for much longer - we plan to start a family in the not too distant future!

Dave_Ham

I would suspect that it is your repayment vehicle that is unacceptable, rather than your situation.

Ask HSBC what repayment vehicles are acceptable..

Good luck

Yorkie1

Note also that a remortgage within 6 months is highly unlikely to be possible.