Remortgaging consolidating debt

pepperpop · 23 March 2018 at 9:08PM

Hi

My wife and I are needing to remortgage to consolidate debt - interest payments on credit cards etc are very high and its really stretching us. We have devised a new way to budget our finances etc should we get our remortgage. Paying off this debt will make us considerably better off each month and we hope that we can then overpay on the mortgage to start clearing some of the debt quicker. Whilst we appreciate this is not ideal - it would take us years and thousands in interest to pay off the credit card (never again will i have one).

We approached a mortgage broker who said he would be able to get us what we need "no problem" however after initial agreement in principle we were declined by Accord. I have been totally up front with everything financially as I didn't want a mistake to go against us. The broker says this was because we had to higher debt to income ratio (the broker said he couldn't understand as we would be clearing all of the credit cards etc.

He is now approaching another lender - I have asked if this will effect our credit score and he has said no? I am just concerned that if we get turned down again we will exhaust our options. (money has become increasing tight due to the high interest charged on the credit cards. I have been working really hard to reduce our outgoings - cutting down all expenditure. I have checked our credit scores mine is fair my husbands is good. I have never defaulted on any payments although I did make a loan payment 2 days late last april (still in same month). We also went over our overdraft limit in January which I'm also worried about this does not appear on our credit report though. - Our bank is 17 miles away and I messed up I couldn't get through to pay money in as I was working. I am looking for some sound advice if anyone could give some please without criticism. Getting the remortgage would really help us out currently we are 60% LTV the extra would take us to 78% LTV. I tried to borrow more last year with our current lender but they said we did not meet affordability. Since then we have returned a lease car which has saved us £300 per month, but low rates on the credit cards have expired. Thanks in advance.:)

ACG · 23 March 2018 at 9:31PM

On the face of it, it is feasible.
There are a couple of go to lenders I tend to use for this sort of thing and never had any problems. But every broker has their own preferred list for quirky cases.

2 declines is not the end of the world but far from ideal.

bike_saving_expert · 23 March 2018 at 10:20PM

hhmm interesting have you considered going for balance transfer cards if your credit score is good you could get cards with 0% for long periods which will literally cost 0 interest rather than paying interest over the term of the mortgage in addition make sure you get cards with very low minimum payments so you want the 1% of balance cards. That way you get extra flexibility and can pay off quicker with any spare money with less interest than a mortgage.

most likely every new credit application mortgage or credit card may leave a mark on your file (not always). This may affect your ability to get accepted for further credit. A couple of applications will be no issue but go over 3 in a month of hard searches and you'll probably start affecting it.

flower77g · 23 March 2018 at 10:51PM

I'd sack the mortgage broker and use a different one. From the YBS group website:

"If you are remortgaging and intend to use any funds for the purpose of debt consolidation, we cannot accept this type of application and you will need to seek independent mortgage advice."

Entirely the wrong lender to have approached for this remortgage application: one of the strictest around regarding debt consolidation!

pepperpop · 23 March 2018 at 10:57PM

flower 77g I'm intrigued by that the accord website says this
"Additional Loans
If your client is looking to borrow more for home improvements, debt consolidation or any other non-business purpose, we could help".

pepperpop · 23 March 2018 at 11:00PM

We have tried to get a 0% card but no luck as I'm am close to the limits on my other cards. We think based on the research we've done that the remortgaging is our best option.

Remortgaging consolidating debt

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