bank refused loan but offered re-mortgage

feisty1

You are not authorised to give advice. You do not know the clients circumstances or how DMP could affect them ie workwise...If I see many more threads like this I will be reporting it to the FSA

Kavanne

shelovestobuystuff wrote: »

We are at our limit.Another month like this and we will lose the house anyway.consolodation makes sense,.

Can you afford £560 a month!?

shelovestobuystuff

Kavanne wrote: »

Can you afford £560 a month!?

Yes,very easily.Our current mortagage is almost that anyway,£10 odds of a difference between the monthly repayments on the current 66K v the proposed 110k mortgage. This remortgage would give us enough to clear ALL the other debt so we would be left with just the new mortage to pay for.We would be better off by £800 a month.We could put money away in a house repair pot and pay extra to clear the mortgage off quicker too.

Dont you re-mortgage every time a fixed rate or new buyer rate ends anyway?We have already re-mortgaged twice before in that case,the first time when our first time buyer rate ended and again when we changed to fixed rate, I just didnt realise it was a re-mortgage.Its not a scary thing to do,its just arranging a better deal.A deal that at this moment in time would save us from ruin.

Kavanne

How much unsecured debt do you have in total at the moment? Is it really 44k? Don't borrow more than you need....

It sounds like you will be extending your mortgage term, so watch out, you are going to be paying MUCH more in interest.

And like I said earlier, was what the bank gave you just a quote or have you actually been agreed in principle for the mortgage? If it was just a quote, don't get your hopes up until you have actually applied!!

shelovestobuystuff

Kavanne wrote: »

You pay a lower interest rate but over a longer time so you CAN end up paying more interest.

Do you need 110k? Yes,that clears the existing mortgage,secured loan,all debt with 2k left to repair a collapsed floor.Thats it all accounted for.

Do you have any early repayment charges on your current mortgage and what do you currently owe over what time?yes we do have early repayment charges and I will be getting the paperwork out tonight to go over that.We had those when our first time buyer deal ended too.66k left to pay and 17 years still to go on current mortgage.

Is that an agreement in principle they gave you or just a quote?

Agreement in principle.Someone calling tomorrow and they want to book an appointment for a surveyer to value the house.

feisty1

who is the mortgage company

shelovestobuystuff

cheltenham and gloucester,passed onto to them via halifax

Kavanne

How much is your ERC?

feisty1

why is yr original mortgage company not just offering you a further advance of 10k on the existing mortgage.
why would haifax refer u to C&G for a new mortgage?

shelovestobuystuff

Kavanne wrote: »

How much is your ERC?[/quote

Right now I dont know exactly,I remember the first one we had to pay when the first time buyer rate ended after 2 years cost us £3,000 even though we just changed products with the same lender.This mortgage deal is older so must be less,due in ERC.I will search through the documents this weekend but I think its only going to be month or two worth of interest.