Hsbc legal mortgage doc 2012. It secures previous unsecure hsbc debt to your house!!!

abc123money

First post....
about to re mortgage to hsbc...all paper work done but the the legal mortgage document. It states
"The debts include overdrafts, loans or money due under any facilities that HSBC bank has granted you or grants you in future.

I called them and they confirmed a first direct unsecured load and a marks and sparks credit would would be included.

Therefore previously unsecured debt becomes secured.

Its their mortgage deeds conditions (2012) edition.

I can make payments on the mortgage miss a payment on a unsecured loan and technically they can have the house.

This isnt mentioned in the morg offer. Nor in key facts.

they are increasing the security on there unsecured debt by stealth?

kingstreet

Many lenders have "all monies" charges where they can use the mortgage deed to claim any credit balances and/or any debts anywhere within their group.

For example;-

http://www.legalbeagles.info/forums/showthread.php?10177-ALL-MONIES-mortgage-clauses-needs-publicising

ACG

When i was working at RBS back in 2007 this is similar to something they brought in. If you had a credit card and a positive balance in your bank account - they would just take the money from your bank if your credit card went in to arrears.

I think it has become fairly common.

Pretty bad really considering your probably paying a higher rate for having an unsecured loan in the first place.

Radiantsoul

This is common, but I am not sure you would lose possession of the house just for missing a credit card/loan payment though.

If you have equity you could face a charging order or bankruptcy which might have a similar result.

_Andy_

"I can make payments on the mortgage miss a payment on a unsecured loan and technically they can have the house. "

er, no.. they're saying that if things were serious with the unsecured debt (eg default, CCJ etc) they could then secure that borrowing.
Doesn't mean they 'have the house' - in any case they already do

Thrugelmir

abc123money wrote: »

I can make payments on the mortgage miss a payment on a unsecured loan and technically they can have the house.

Do you want the good mortgage rates that HSBC offer? If so this condition doesn't seem particularly onerous. As in the event of default they could obtain a charging order on the house in any event.

Goldiegirl

If you find this worrying, then make sure you don't have any other loans/credit cards with HSBC, then they wouldn't be able to use the house as security for these types or commitments

Caladan

I would be interested in seeing this document. A Re-Mortgage with HSBC itself would not include this clause.

If this is Business lending rather than a normal personal mortgage the story is slightly different however, as Business loans, secured or otherwise, tend to have different rules.