HSBC mortgage application - debt or no debt?

BristolExile

Hi

Many mortgage calculators supplied online by providers are clear when you enter credit card debt. i.e. asking if you have debt and whether you will clear it on completion and so forth.

However the HSBC calculator does not. It merely asks for credit card debt.

I am planning to clear my debt on completion of the mortgage. Therefore can I enter the debt as zero?

Thrugelmir

Are you looking to remortgage, borrowing more in the process to clear existing debt?

BristolExile

Currently have mortgage with hsbc. Looking to move home. Mortgage taken out at £170k some years ago, now £144k remaining on it. Hoping to borrow £170k again and with equity from sale of current house (hoping around 70k) and gift from parents (hoping around 35k) to buy a property at c.£240-250k.

Ergo, credit card debts of £10k will be cleared but I could argue some of my parents money has done that. No guarantee I will get that money until I start the application process though so it may all be tied up in one pot.

Therefore, on that basis, I will have no credit card debt on completion but would HSBC still count this as debt to be considered in the application? Many lenders would not it appears.

Jimmy1977

Sounds very similar to my situation at the beginning last year with HSBC. I had an HSBC loan plus some credit card debt, I had to clear it all in order to get the mortgage amount I was after. The HSBC man who did my application was very very thorough with everything, but the good thing about that was that the application was approved in just a day and a half. If possible the best situation would be to use part of the parental gift to clear the cards and then make the application.