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Borrowing on my mortgage

I have phoned my mortgage company today to ask to borrow an extra £10,000, to do the house up with.
I have equity of about £150,000. as my current mortgage is £39,000.

Because I have a M&S life of balance transfer running of £3000. they have said that they cant lend me any money because I dont have enough income:confused:
They did say that if I said I was paying off the M&S card, with it, then they would lend it to me......

I have always been under the understanding that you cant borrow more on your mortgage to pay off debts.....has this changed and now, and you can then??

I would really like to know what you cant borrow extra for......does anyone know the answer??

Thanks in advance.
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Comments

  • Tankey
    Tankey Posts: 10 Forumite
    Part of the Furniture Combo Breaker
    Anyone??:confused:
  • Cannon_Fodder
    Cannon_Fodder Posts: 3,980 Forumite
    Lenders are being very cautious since the credit crunch, asking for other debts to be cleared before mortgage funds are provided/increased.

    They will use "Affordability" as the reason. But really its just a way to funnel credit to people with the very best credit histories.

    As the alternative, i.e. being lax with lending, could involve further billions in taxpayers money going to the banks, it is perhaps not a bad thing, although inconvenient to some individuals.
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Yes you can borrow for debt consol if the lender allows it.
    With your current lender you obviously have the choice of borrowing with the extra to pay it off, or not borrowing any extra at all.
    Alternatively you could possibly find another lender willing to remortgage to include the original amount you wanted.
  • Tankey
    Tankey Posts: 10 Forumite
    Part of the Furniture Combo Breaker
    Thank you for your replies.

    The whole thing seems bizarre to me:confused:

    A few years ago, I asked to increase my mortgage to have a new bathroom to which they agreed.....until at the end of the convo, I said I might buy a new car with the change and clear my overdraft......they immediately refused their offer cos it wasnt ALL for renovations and said that they could only offer me a loan to run alongside the mortgage.....

    About 6 months ago, I applied for a loan for £5000....They turned me down but said I could have a credit card at 6 months 0% and a zillion% thereafter...I turned it down...

    Now I am wanting money to do the house up with and they will only give it to clear my debts :rolleyes:

    So far, I havent been lent a penny !!!!

    I assume I am safe if I ask for £10,000. on my mortgage to clear my debts then??

    I'm with Abbey BTW
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Well no, because you're not using £10k to pay off debts. If I've read it right, they're saying they will lend you £10k - £7k for home improvements, £3k to pay off the CC.
  • Tankey
    Tankey Posts: 10 Forumite
    Part of the Furniture Combo Breaker
    She told me on the phone that i could use the whole 10k to pay off debts if I liked............?? would that be right...do they allow that now?
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Do you have 10k of debts?
    Obviously they're happy for you to do that as they've suggested it.
    Would that cause you a problem with not being able to do the home improvements?
  • Tankey
    Tankey Posts: 10 Forumite
    Part of the Furniture Combo Breaker
    I would rather do less home improvements and pay off the debts TBH, I just didnt think anyone allowed adding on to your mortgage to pay off debts, I thought it could be for home improvements only.....
  • They are happy to do that as you will be turning unsecured cc debt in to secured debt. Much easier for banks to get their money back (reposession of your home) if you don't keep up repayments. Read Martin's advice on why this is a bad idea...
    Debt at LBM (March 2006): £30,000 :eek:
    DEBT FREE SINCE APRIL 2008!!!! YIPPEEEEEE!!!!!
  • Tankey
    Tankey Posts: 10 Forumite
    Part of the Furniture Combo Breaker
    I see what you are saying, but is it not better to stick 10k on your mortgage at 4 odd % and pay it off comfortably than paying off credit cards and getting bank charges cos its a bit too much each month??
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