I applied for a interest only mortgage with HSBC, met their LTV and repayment vehical critera, thought it had been approved, but the mortgage underwriter has just declined me. Any clues to why?
House value is: £420k
Outstanding balance: £294k
Debt
£10k car loan
£12k credit card
£3.5k overdraft
Income:
£130k a year salary, with bonus of around £5-7k
Options in a firm that should pay out in approx 5years
Repayment vehical:
£250 per month into an ISA
pension
If it's the debt, would it be worth borrowing the money off family to clear the debt and then reapplying?
Or if we went in for a 2-5year fixed interest only? One of my thoughts is that they might have thought we wouldn't have the mortgage for long (short term lending is loss making!) so if we reapplied on the 5year fixed?
We've asked for specific details as to why, but i'm not sure they have to tell us?
Any advice or clues would be greatly appreciated.
House value is: £420k
Outstanding balance: £294k
Debt
£10k car loan
£12k credit card
£3.5k overdraft
Income:
£130k a year salary, with bonus of around £5-7k
Options in a firm that should pay out in approx 5years
Repayment vehical:
£250 per month into an ISA
pension
If it's the debt, would it be worth borrowing the money off family to clear the debt and then reapplying?
Or if we went in for a 2-5year fixed interest only? One of my thoughts is that they might have thought we wouldn't have the mortgage for long (short term lending is loss making!) so if we reapplied on the 5year fixed?
We've asked for specific details as to why, but i'm not sure they have to tell us?
Any advice or clues would be greatly appreciated.