why wont mortgage provider HELP ?

hammy

I am in the process of borrowing £29,000 over 25 years ( secured ) I have only one Default with a credit card.why wont my mortgage provider lend me the money? but will give permission for another lender to secure loan on my property lender not (on high St) I have a £65,000 mortgage and property valued at £140,000. Do you think I should go and see mortgage provider face 2 face and ask why they are willing for me to go elsewhere and pay more as I applied on line.

lynzpower

It might be that the lenders are aware that the interest rates will be going up soon, and might find this too risky. I really dont know.

In saying that many posters here are paying more than 29000 off on cards without going the secure route, have you thought about managing that? If you wanted, we can look at ways for you to cut back, or try another route. HAve you done an SOA before?

I would be very careful of taking such a big risk with your home too, if theres any way you can avoid it, I would.

hammy

£850 PCM on cards and loans alone still mortgage bills food etc etc. we thought a quick pay off of all debts ( then cut the cards up ) would help us out what is a SOA

lynzpower

http://forums.moneysavingexpert.com/showthread.html?t=107280

HAve a look here for a full explaination!!!

tyllwyd

The mortgage provider doesn't care if you are paying more monthly interest or not, they are looking at their own risk. At the moment, they have a £65,000 mortgage secured on your house, and it seems that they don't want to increase that. If you go elsewhere, then if the house gets sold the mortgage provider will have first claim on the proceeds, and the second lender would only get paid out of whatever was left.

But I agree with lynz - taking out a second loan should be a last resort. If you are happy to post a description of your current state of affairs, it would help you to get the situation clear in your own mind, and people here might be able to give you some useful advice.

hammy

Does anyone think it would be better to go and see mortgage provider and try for an increase in mortgage face to face ? I have 2 young children I don't want to be scrimping and saving all their childhoods...

lynzpower

Unfortunately, scrimping & saving is the only way that you will get out of debt, unless you have a lottery win up your sleeve!! the other thing to say is obvioulsy you will have additional interest by taking it onto the mortgage, and for way longer.

If youve been blown out by your lender once, it will have a negative impact on your credit rating. the more you apply for stuff, if you get rejected, the worse it gets. Sorry to be the bearer of bad news etc, but scrimping isnt actually that bad. Honestly.

sammy115

In my experience, extending the mortgage is not good. I did it - with the full intention of cutting my credit cards up and guess what. i am skint again and in more debt. You need to understand first HOW you ended up with the credit card debt. It is from not scrimping and scraping! Please don't go to another lender. If you added up all the interest you would pay to an 'off the high street lender' as opposed to your cc debts you will be shocked. And what a waste of money.

I don't wish to sound harsh, but i really do feel that another loan is not the way to go. Try and get your CC's down by snowballing. https://www.whatsthecost.com and budgeting effectively.

Xbigman

hammy wrote:

Does anyone think it would be better to go and see mortgage provider and try for an increase in mortgage face to face ? I have 2 young children I don't want to be scrimping and saving all their childhoods...

People today use the phrase 'scrimping and saving' to mean simply not spending what they want when they want. What is often really needed is a 'budget'. You must work out what your income and expenditure is and set yourself a budget to live to. This should include some allowance for luxuries, new clothes and decent birthday/xmas pressies for the kids. Until you see those numbers written down (or posted on here) you should not make any financial decisions. It might be that you have an overspend and have to cut back or you have an underspend and can pay off other debts/save, but you don't know until you put together a budget.

You mention your children. Believe me that living within your means and saying no to them occasionally will be one of the best things you can ever do for them. Just don't continually moan at them and say 'you can't afford it' all the time. Just say no or put a positive spin on saying no, like saying you are saving money for something else or spending your money on something else. That teaches children to limit their expectations and that they need to make financial choices. In that vein, sometimes let them make the choice. When you are out with them ask them if they want ice cream OR drinks. Don't just buy both and let them think they can have it all.
Regards



X

lynzpower

Xman

Never a truer word spoken about paying for kids. If my folks had been a bit more like you, i may not be in the situation i am now :rolleyes:

hammy

Has anybody heard of good stories regarding consolidating loans?does it work I just feel paying off £29,000 is going to take me years