HSBC refused to all me to get Ocean loan

JasmineSheffield

Dear All,


I'm writing as I'm in need of advice. I applied for a secured £29,000 loan and was accepted, everything sorted and then just before it went through HSBC refused to allow a second charge on my property. Apparently they don't allow second charges and I can't remorage as I haven't enough equity (only £13,000)


I contacted a well known company and they said they could offer me £15,000 secured and not have to tell my mortgage company (which sounds dodgy). I was tempted as it would keep the wolf from the door, but the APR is 20% and over 15 years. They can do this as they are unregulated.


So my question is does anyone know any other loan companies that will offer around £29,000 and not inform my mortgage company?


My partner is really stressed, I was thinking of trying to hold out for another couple of years till I have the equity, but apparently I'll struggle to get a remortage because of my £29,000 debt.


Jasmine

FelOn_2

JasmineSheffield wrote: »

So my question is does anyone know any other loan companies that will offer around £29,000 and not inform my mortgage company?

Jasmine, i don't think anyone would be daft enough to recommend illegal activities, as your lender seems prepared to do.

Dylanwing

Is there a reason why HSBC won't allow a charge? Most lenders are OK about it as it does not affect their first charge on the property?
If things are really bad, maybe you need to post on the debt Forum as I gather the guys there are really helpful - There may be a better solution than risking your home, and remember, property values are not guaranteed to rise, as many in the USA have found out.

JasmineSheffield

FelOn wrote: »

Jasmine, i don't think anyone would be daft enough to recommend illegal activities, as your lender seems prepared to do, on this fine forum.

Sorry didn't mean illegal, they just said they could get around not informing them as it was unregulated. They are a household name (if you watch daytime TV LOL)

JasmineSheffield

Dylanwing wrote: »

Is there a reason why HSBC won't allow a charge? Most lenders are OK about it as it does not affect their first charge on the property?
If things are really bad, maybe you need to post on the debt Forum as I gather the guys there are really helpful - There may be a better solution than risking your home, and remember, property values are not guaranteed to rise, as many in the USA have found out.

I'll check them out.

HSBC said they no longer allow second charges as they want to remain one of the lowest home reposses and even if they let me remortage it can only be 90% of the value.

jamesd

Daytime TV means they are a company to avoid.

Is it actually practical for you to hold out? If it is, wage inflation may well mean that you can handle higher repayments over the years, while the debts stay fixed.

Have you asked HSBC if they will do an additional advance themselves? Any repayment holiday or interest only options that could help you to reduce the debts?

Debt repayments do reduce the amount of available income you have for mortgage repayments and that affects how much mortgage lenders who use affordability calculations will lend you. So long as you don't have missed or late payments there will probably be a remortgage option for you, particularly if property prices continue to rise.

A_Nice_Englishman

You don't say what you want the £29K for but if it's to pay off other loans or credit cards you are exchanging unsecured debt for secured debt and that is usually considered a Bad Thing round here.

As Dylanwing says, I would post on the Debt Free Wannabee board and see if there are better ways of dealing with the problem before doing anything else.

MarkyMarkD

You can get 125% mortgages from Northern Rock, A&L, Birmingham Midshires to name but a few, so long as you have sufficient income to afford them.

If you can get a deal like this it will be WAY cheaper than taking a £29k secured loan on top of your mortgage.

hungary97_2

hsbc are still doing second charges as i have got permission for a 25000 one today however i do have enough equity in my property to not go over their 90% lending criteria if i was to go directly to them.

MarkyMarkD

So, why aren't you doing so, hungary?

FelOn_2

Dylanwing wrote: »

Is there a reason why HSBC won't allow a charge? Most lenders are OK about it as it does not affect their first charge on the property?

£29,000 loan and equity £13,000.