Jalexa:

Chopstick:

Obviously, we're 3 weeks into the process so credit checks will be showing - and presumably showing as turned down -

No, the "footprint" is a record of a search, not a record of failure.

That said it would be money well spent to find out just how many searches HSBC has made during the process as you are probably aware too many searches in too short a time will adversely impact your rating.

Regarding the loan, from here as described, it doesn't look a well focussed excercise. You talked, or got talked up from £60k to £97k. The trouble is a good joint salary and employment these days is not necessarily risk free in lenders eyes. Your didn't reveal your outstanding debt here, and that is your business, but presumably you did in your application. Sorry in the lenders eyes you are scr*wed both ways. Is it debt consolidation or home improvement? There is a limit to how much a £171k house can be improved and to what extent increased value reflects the improvement cost. I think a £25k unsecured home improvement loan would have been about adequate, except that not what you asked for.

It pains me but I'm with HSBC here.

Hi Jalexa

Thanks for replying. Just to clarify, we were offered UP TO £97k but stayed at our requested £60k. I've got membership of a credit reporting agency so I'll go and check what is showing up now. We're now in talks with them to hopefully come up with a package that works for all sides so will keep the thread updated as and when we have a decision.

tt lady:

I'm only guessing the reasons but I could understand why lenders aren't willing to lend for consolidation of credit cards. They will think that you will end up with both credit cards and the loan in a couple of years - if you look on some of the other forums you will find lots of people who are in that position - which makes recovery of their loan riskier. Consolidating the loan and spreading it over a long period could end up with you paying more interest in the long term - 5% for 25 years is much more than 20+% for a couple.

With a joint salary of £45k and no mortgage payments to make you should be able to get the credit cards down by quite a bit of belt tightening and careful budgeting. You might stand a better chance if you can go into your bank with a couple of months of debt reduction in place and a sensible budget which you've kept to.

Hi again

Thanks for the reply - we've had a good chat to them again today and they are really going out of their way to get us a solution that works for all parties - so we're getting there.

:-)

Chopstick:

Obviously, we're 3 weeks into the process so credit checks will be showing - and presumably showing as turned down -

No, the "footprint" is a record of a search, not a record of failure.

That said it would be money well spent to find out just how many searches HSBC has made during the process as you are probably aware too many searches in too short a time will adversely impact your rating.

Regarding the loan, from here as described, it doesn't look a well focussed excercise. You talked, or got talked up from £60k to £97k. The trouble is a good joint salary and employment these days is not necessarily risk free in lenders eyes. Your didn't reveal your outstanding debt here, and that is your business, but presumably you did in your application. Sorry in the lenders eyes you are scr*wed both ways. Is it debt consolidation or home improvement? There is a limit to how much a £171k house can be improved and to what extent increased value reflects the improvement cost. I think a £25k unsecured home improvement loan would have been about adequate, except that not what you asked for.

It pains me but I'm with HSBC here.

I'm only guessing the reasons but I could understand why lenders aren't willing to lend for consolidation of credit cards. They will think that you will end up with both credit cards and the loan in a couple of years - if you look on some of the other forums you will find lots of people who are in that position - which makes recovery of their loan riskier. Consolidating the loan and spreading it over a long period could end up with you paying more interest in the long term - 5% for 25 years is much more than 20+% for a couple.

With a joint salary of £45k and no mortgage payments to make you should be able to get the credit cards down by quite a bit of belt tightening and careful budgeting. You might stand a better chance if you can go into your bank with a couple of months of debt reduction in place and a sensible budget which you've kept to.

Thanks for the prompt reply.

Our combined salary is £45k so no worries on that aspect. I just struggle with what the problem is - we would be cutting our outgoings by consolidating and are 'happy' that we understand the risks of securing against property etc - but this appears to be our best hope by cutting out the monthly interest etc

We plan to phone them again to discuss it further as my husband was at work when they called so not the best time to take it all in. I don't think they understood that the bank statements as they stood at the moment included c/card payments - which of course would be gone after the mortgage was agreed.

Thanks again for the reply

Provided you earn enough to cover the mortgage (ie. at least £20k per year between you) then go to a whole of market mortgage broker and ask them what is available to you. You'll need to allow for the fact that your current debts will be factored into your availablilty ie. because you've got existing debts you'll be able to borrow less. It might also be an idea to get the credit card debt down as much as possible first.

Hi all

Quick background.

We own our house outright following a critical illness payout (at which time the FA at HSBC advised us to pay the mortgage off - which we did).

We have recently decided to do some debt consolidation and a mortgage for home improvements (improve don't move and all that) and applied to HSBC (whom we have banked with for 25 years) for a £60k mortgage on a property valued at £171k over 10 years. We were advised we didn't need a mortgage but a 'Home Owner Loan' so we filled in all the paperwork, got a decision in principle that they would ultimately lend us £97k.

They have phoned today to say they are not agreeing the 'loan' as we don't fit their profile for lending at the current moment. We would be paying off all credit cards and the only other loan outstanding would be the cars each month - we are both working and as I say, the DIP came out to us borrowing £97k

So, 3.5 years ago we had a mortgage with them for more and we were ok then - but now we have £171k in equity we're not worth a punt for £60k??? Am I missing something here?

Obviously, we're 3 weeks into the process so credit checks will be showing - and presumably showing as turned down - so where do we go next??? Loathe to go to the Ocean Finances of this world but at a loss that if our own bank of 25 years won't lend then who will???

Thanks in advance for any words of wisdom.

L