Turned down for re-mortgage

regularsaver1

do you have any early repayments charges at Halifax the moment - with these is it worth your while consolidating with the set up costs ect?

Frugal_Fox

AndrewSmith wrote:

Even if you do have to initially go with a lender who is outside of the 'usual' high street names, whatever you do make sure that you do not go to a 'specialist' broker. You know the ones, they advertise on daytime TV offering magical solutions to any mortgage problem.

Andy

Did this before - pre MSE days. What a mistake!!!

Frugal_Fox

regularsaver1 wrote:

do you have any early repayments charges at Halifax the moment - with these is it worth your while consolidating with the set up costs ect?

No - we are out of any 'chargeable' period. So are free to shop around - if we could! :mad:

regularsaver1

yeah - remember you'd have £175 early discharge fee and possibly £50 deeds dispatch fee

and then there may be a fee with new lender

Frugal_Fox

We do have the discharge fee of £175 - but not the deeds fee. However, think we will still be with them for the next 12 months!

Really begrudge paying nearly £900 to them each month - the extra would really go someway to clearing the remaining debt. To be honest, I'm happy to leave the home improvements for a bit - yes they'd make life easier and nicer, but can still cope. Would be nice to sort out the other debt though as we are paying £650 each month off that. We could lessen it if we needed to - but really want to get rid of the debt and just have the mortgage.

We shouldn't have taken such a small term on the mortgage perhaps - but didn't envisage that if we needed to amend it that they would say no - you can't have it!

regularsaver1

you may be able to increase the term in the mean time - ie bringing monthly payments down and poaying more to your remaining debt. ok the mortgage won't be reducing as much as it normally would, but it wouldn't with what you were wanting to do anyway

its quite simple to increase the term

Frugal_Fox

Regularsaver & Andy,

Thank you both so much - 40 minutes on the phone to the Halifax, have re-negotiated the terms of my mortgage. Saved almost 2% on the interest rate and my new payment is now under £550.

The extra can go towards clearing the debt, and ensuring we pay on time, and then I can look for a fab re-mortgage deal once I am a 'better risk'.

However - still one question...

if I want to (at a later stage) consolidate my other debts - is it relatively simple given the second charge on the property? Any advice??

Thanks again,
FF

regularsaver1

Frudal Fox - I do the job of the person you spoke to over the phone but within branch so thought it was worth a shot

what are you asking about the 2nd charge - if it stays you will need their permission for any further borrowing, but not if you repay

AndrewSmith

Excellent, well done.

Existing lender should always be your first port of call.

Andy

Frugal_Fox

Andy - my existing lender was my first port of call - but I asked differently, and wasn't reviewing my mortgage - but starting a new one, and was told was not eligible because I have no income. However thanks to you and regularsaver I tried again! What a result.

Regularsaver - as for the second charge: I will be looking to consolidate my existing debt - not increase it, but to reduce the interest. If I take out a 'futher' loan, because of the amount it is likely to be secured on the property. I want to repay the second charge (Black Horse) - but can't do that until I have consolidated, so may 'look' like 3 charges on the property - is this making any sense?

Or am I complicating things, and to just apply for additional lending from a reputable source, advising that I want to pay off my existing credit?

FF