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    • Gottobeabetterway1975
    • By Gottobeabetterway1975 17th Jul 17, 8:26 PM
    • 5Posts
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    Gottobeabetterway1975
    Difficulty remortgaging
    • #1
    • 17th Jul 17, 8:26 PM
    Difficulty remortgaging 17th Jul 17 at 8:26 PM
    We were offered a good deal remortgaging with our existing lender, but they are now reviewing it due to credit rating being 'poor' with Equifax. This is apparently as high credit cards (hence the remortgage application), yet with Experian credit rating with exact same data is 'excellent'.
    We only took out the credit card debt as we needed to renovate our property to a certain standard as a condition of the mortgage (who ironically wouldn't lend us the extra cash at the time)
    Taking the remortgage would save us a whopping £2.5k a month in interest and release enough funds to finish our home and thus be in a position to sell at a healthy profit and consider a down size / mortgage free life which is why we took it on). It would also free up income to make over payments and or save to pay off early. We would be at about 75% Ltv if the additional borrowing is accepted. We are self employed but have 3 years+ books, have never missed a payment or had poor credit in the past.
    We tried a broker (SPF) but they couldn't help and suggested citizens advice! We surely don't need to go down this route, we just want to reduce our sky high short term interest payments.
    Appreciate we are deemed as 'high risk' despite high income, equity, never been declined credit previously or ever missed payments etc. We seem to be a credit card companies dream customer and they are doing very well out of us. Be good to know if this is a possibility with specialist lenders or if we just drop it and work on a plan B?
    Also do guarantor mortgages / secured lenders exist?
    Thanks in advance.
Page 1
    • glosoli
    • By glosoli 17th Jul 17, 8:44 PM
    • 633 Posts
    • 366 Thanks
    glosoli
    • #2
    • 17th Jul 17, 8:44 PM
    • #2
    • 17th Jul 17, 8:44 PM
    You should probably direct this thread to the Mortgages and Endowment board.

    I think you should probably try a different broker, or approach a different lender. When it comes to debt consolidation, it is a very highly regulated sector in which mortgage advisors operate, which makes some advisors cautious to take these cases on. Furthermore, lenders occasionally have very specific criteria in terms of debt consolidation, in terms of maximums they would permit to lend, maximum loan to values, so on and so forth. Some lenders continue to include the unsecured debt repayments despite these loans and agreements being consolidated, whereas others are happy to remove them from the calculations.

    In terms of your equifax score being "poor", this is highly unlikely to have caused any decline decision. When lenders obtain a decision on your application, all they can see is your liabilities, adverse credit history, whether you are on the electoral register etc. They do not see how Equifax or Experian themselves "view" you.

    Assuming your income stacks up relative to what you are looking to do, and if you have no adverse credit as you mention, and as long as you approach the correct lender, I don't really see any reason why you can't do what you are looking to do.

    Would you care to provide some actual figures in terms of how much you are looking to borrow in total on your mortgage, how much the unsecured debts come to, and what the incomes are?
    • zx81
    • By zx81 17th Jul 17, 9:04 PM
    • 13,191 Posts
    • 13,507 Thanks
    zx81
    • #3
    • 17th Jul 17, 9:04 PM
    • #3
    • 17th Jul 17, 9:04 PM
    As above - no lender would give a flying fig about either Equifax's or Experian's view of you, even if they could see it, which they can't.

    If you're struggling on affordability, I'd engage a broker. A good one.
    • Gottobeabetterway1975
    • By Gottobeabetterway1975 17th Jul 17, 9:27 PM
    • 5 Posts
    • 0 Thanks
    Gottobeabetterway1975
    • #4
    • 17th Jul 17, 9:27 PM
    • #4
    • 17th Jul 17, 9:27 PM
    Thank you I was surprised - it's now with the underwriters.. the broker we used tried another loan broker who did a 'soft search' and said the same (?!) our mortgage provider offered an advance of £96k before stalling.
    Mortgage is 499k /2300 pm repayment (was £525 when took out 22 months ago) net monthly income £8-9k - most of which after the mortgage and usual outgoings is going on the short term borrowings so would be so much better off leveraging this. Property currently valued at £850k, would be circa £950-£1m if we could find a further £40k or so to finish it. Thank you - will find that board and re post.
    • Gottobeabetterway1975
    • By Gottobeabetterway1975 17th Jul 17, 9:28 PM
    • 5 Posts
    • 0 Thanks
    Gottobeabetterway1975
    • #5
    • 17th Jul 17, 9:28 PM
    • #5
    • 17th Jul 17, 9:28 PM
    Thank you - any recommendations gratefully received if that is allowed on here?
    • CD*
    • By CD* 17th Jul 17, 9:33 PM
    • 9 Posts
    • 5 Thanks
    CD*
    • #6
    • 17th Jul 17, 9:33 PM
    • #6
    • 17th Jul 17, 9:33 PM
    We were offered a good deal remortgaging with our existing lender, but they are now reviewing it due to credit rating being 'poor' with Equifax. This is apparently as high credit cards (hence the remortgage application), yet with Experian credit rating with exact same data is 'excellent'.

    ...

    Appreciate we are deemed as 'high risk' despite high income, equity, never been declined credit previously or ever missed payments etc. We seem to be a credit card companies dream customer and they are doing very well out of us. Be good to know if this is a possibility with specialist lenders or if we just drop it and work on a plan B?
    Also do guarantor mortgages / secured lenders exist?
    Thanks in advance.
    Originally posted by Gottobeabetterway1975
    Have you tried a lender that uses Experian?

    And a good Whole of Market Mortgage Broker?
    • bazzyb
    • By bazzyb 17th Jul 17, 10:25 PM
    • 1,028 Posts
    • 3,178 Thanks
    bazzyb
    • #7
    • 17th Jul 17, 10:25 PM
    • #7
    • 17th Jul 17, 10:25 PM
    Thank you I was surprised - it's now with the underwriters.. the broker we used tried another loan broker who did a 'soft search' and said the same (?!) our mortgage provider offered an advance of £96k before stalling.
    Mortgage is 499k /2300 pm repayment (was £525 when took out 22 months ago) net monthly income £8-9k - most of which after the mortgage and usual outgoings is going on the short term borrowings so would be so much better off leveraging this. Property currently valued at £850k, would be circa £950-£1m if we could find a further £40k or so to finish it. Thank you - will find that board and re post.
    Originally posted by Gottobeabetterway1975
    From what you have posted, the issue is clearly affordability rather than your credit score.

    Look at it from the lenders point of view - it is a risky loan as they have no guarantee that you will pay the existing debts following the remortgage and if you kept those debts in addition to the remortgage you would be in financial difficulties.

    As posted above, you need to find a good mortgage broker if the underwriters decline this application.
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