debt consolidation and remortgaging

jules1973

Hi, I need some help with remortgage advice.

Facts:
We have a £83000 mortgage with Northern Rock
Our house is worth £125,000
We have £25000 in unsecured debt, inc £3000 on credit
Our montly outgoings on mortgage and unsecured debts are £1200
I earn £12,000 per year with extra £3000 as overtime
Hubby earns £16000 and £3000 overtime

We would like to use equity in mortgage to pay off making us £500 a month better off. I have put details in various mortgage calculators and it takes our debts in account and it does not give us enough. Does anyone know of any lenders that will not take debt into account if you are consolidating it. I would be happy to stay with northern rock. I know debt consolidation in mortgages is a bad idea but I am working severely reduced hrs til our daughter goes to school next year so I am able to double my salary. We are not having any more children. So next year we intend to make overpayments to save money in long run.

Any help appreciated!

annie-c

Can't offer help myself but think you might be best to take advice from a broker. See Martin's advice on mortgages on the main site for some tips. Good luck!

herbiesjp

There should be a few lenders that could look at this for you depedning on your exact circumstances, but please remember:

1) You would be turning unsecured debt into secured.
2) You would be saving money in the short term by remortgaging the whole amount onto the mortgage, however as the mortgage runs for a longer period of time you will be paying back more in interest as the mortgage will run for a longer period of time.

HTH

Simon_gloster

I agree with herbiesjp. You will be transferring unsecured debt to secured debt. If this is to make you a saving, the person who deals with your mortgage should at least advise you of this.

I dont know what the debt it tied up on. If its credit card debt, Nat west will not take into account cards, but they will on loans. You do have sufficient equity and you'd need approx 3.8 x joint income. N Rock would do this by a country mile, not sure what rate they'd offer you.

My impartial opinion would be fee free with ahlifax as they do a mix of affordability and income multiples. In fairness, lenders look at each case carefully and if they think your plan is low-medium risk I can't see you getting any problems.

Si

DNKPets

My advice here is to do what I have just done and phone Northern Rock and ask for the mortgage review service. Explain what you want to do to them and see if they will help. Doing this I have done exactly what you want to do and at a good rate compared to what my original mortgage was on.

Derek