Advice on consolidation/salary

michxx

Hi

I currently have a soon to end fixed rate on a 97k mortgage on a property which would sell for circa £240k. I have a secured loan from First Plus for approx 60k and maxed out extortionate rate credit cards resulting in total monthly outgoings of approx 2.2k.

I have never missed payments on anything but have some annoying few day late payments on a low balance cc which I didn't have a dd set up for. I haven't made any credit applications for a couple of years.

Can anyone tell me what I would need to earn to consolidate for 190k in the current climate? I'm single and work part time but might have the opportunity of increasing my hours.

Also, if I couldn't get a mortgage for 190k would it be possible to remortgage for 130k or would the First Plus charge prevent that?

I believe by remortgaging my monthly outgoings would reduce by £££s.

Any advice on lenders/brokers would be appreciated.

Thank you.

_Andy_

c £47.5k income needed.
If you wanted to change mortgage lenders FP would need to agree a deed of postponement (DOP).

What is your income at the moment?

michxx

About 42k.

herbiesjp

How confident are you on that property value?

As at that property value and that mortgage amount you would be on just under 80% LTV - so might get a few good deals available to you.

You would need 4.5 times income, which is not unheard of though

You would have to be aware of the implications of turning unsecured debt into secured debt and the fact you could be paying back more in interest over a longer period of time. However, if needs dictate that this is the course of action you want to follow, then you could find a few options.

Are you consolidating the FP debt into the new mortgage debt - or did you want this to remain outstanding?

michxx

At the height properties like mine were selling for £290k so I hope that is pretty fair. I'm including the secured FP loan in the £190k. I'll never pay off my cc's any other way and hope that in the future I will be in a position to make capital repayments to reduce the term of my mortgage.

herbiesjp

michxx wrote: »

At the height properties like mine were selling for £290k so I hope that is pretty fair. I'm including the secured FP loan in the £190k. I'll never pay off my cc's any other way and hope that in the future I will be in a position to make capital repayments to reduce the term of my mortgage.

Sounds like you have thought it through

Don't forget to cut up the cards afterwards though.

Then find a whole of market adviser to help see if you can get a lender to agree this for you