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  • FIRST POST
    • Loft Boy
    • By Loft Boy 19th Apr 17, 11:59 AM
    • 37Posts
    • 60Thanks
    Loft Boy
    Remortgage advice - Debt Consolidation
    • #1
    • 19th Apr 17, 11:59 AM
    Remortgage advice - Debt Consolidation 19th Apr 17 at 11:59 AM
    Hi all

    Our two year fixed deal with Nationwide is.coming to.an end soon so we are looking to remortgage.

    We bought the house 2 years ago for £240k putting down a 15% deposit. When the mortgage finishes there will be approximately £191k left.

    The house is at a conservative estimate is probably now around £265k maybe more.

    We currently have approx 20k unsecured debt split over 3 cards and ideally would like to.roll.it into the mortgage as in about 18months time my wife.will be returning to.work.so at Tha point we cam sart overpaying. Main reason for.the debt is work.on the house , new car after old one blew up etc.

    My wife stays at home and I am the sole earner. I am currently on a rolling temp contract in am industry I have been in for over 10 years. They have offered me permanent at around 55k plus 10% bonus but I am.currently on £300 per day paye which I over 70k annually.

    Is this doable??

    Thanks
Page 1
    • ACG
    • By ACG 19th Apr 17, 12:21 PM
    • 14,524 Posts
    • 7,243 Thanks
    ACG
    • #2
    • 19th Apr 17, 12:21 PM
    • #2
    • 19th Apr 17, 12:21 PM
    Potentially but there is a lot to overcome.
    Debt consolidation at that LTV is not the easiest. Temporary contracts can also be an issue, but depending on the finer details can be overcome.

    The 2 together probably limits your options.

    An alternative could be to keep your mortgage where is is withnationwide and then apply for a second charge. That keeps your current mortgage on a good rate, your secured loan will be a little higher but it is "only" for £20k so in the rand scheme of things probably not too bad.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Lilla D
    • By Lilla D 19th Apr 17, 1:53 PM
    • 46 Posts
    • 18 Thanks
    Lilla D
    • #3
    • 19th Apr 17, 1:53 PM
    • #3
    • 19th Apr 17, 1:53 PM
    I can only agree with ACG.

    If you're a contractor on a £300 daily rate (via an umbrella company perhaps?) in the same industry for over 10 years, then it is important when you started contracting. There are lenders who can potentially accept your income situation and do the debt consolidation. The lender options are limited, but it could be possible.

    As an alternative, you could indeed consider remortgaging with Nationwide on a like-for-like basis and take a second charge for the £20k.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Loft Boy
    • By Loft Boy 19th Apr 17, 3:18 PM
    • 37 Posts
    • 60 Thanks
    Loft Boy
    • #4
    • 19th Apr 17, 3:18 PM
    • #4
    • 19th Apr 17, 3:18 PM
    Its 300per day PAYE they won't do.limited or umbrella due to IR35

    Have only been contracting since Sept 16

    Thanks!
    • ACG
    • By ACG 19th Apr 17, 3:24 PM
    • 14,524 Posts
    • 7,243 Thanks
    ACG
    • #5
    • 19th Apr 17, 3:24 PM
    • #5
    • 19th Apr 17, 3:24 PM
    Nobody is saying they will not do it. It just comes down to the finer details.
    It would probably be worthwhile speaking to a broker about your circumstances. We can only give generic information on this site and for your query I think it would be better for you to sit down with someone who can get all of the information and then advise accordingly as it is not really straightforward.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • 70sthrowback
    • By 70sthrowback 20th Apr 17, 1:10 PM
    • 79 Posts
    • 32 Thanks
    70sthrowback
    • #6
    • 20th Apr 17, 1:10 PM
    • #6
    • 20th Apr 17, 1:10 PM
    ACG

    Interested in your remark about debt consolidation being difficult with that level of LTV. If the mortgage is going to be £191k and the value is at least £265k it gives a 73% LTV? If I have read it correctly.

    In your opinion what is an acceptable level of LTV for debt consolidation?
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