Remortgage Advice Wanted!

Nikkei

Hi Everyone

We've decided to look into remortgaging to see if it is a viability and are in need of some advice on how to proceed. We've read Martins remortgaging guide but wanted to put our situation out there aswell and ask for advice based on our circumstances.

We bought our house back in December 2006 as first time buyers taking out a mortgage and an unsecured loan. I'm struggling to find the most up to date statement so I have stated the details on the last statement I can find 31/08/09. Our house is now roughly valued at £150,000

Mortgage: £110687.90
Unsecured Loan: £27725.17

The interest rate is set 5.99% and we pay £836 monthly (for the two repayment) and at the 31/08/09 had 27 years and 4 months remaining. Early repayment and discharge of mortgage fee £4733.80 if repaid before 31/10/11 applies. The interest rate on the loan increases to 8.9% if we repay the mortgage and go elsewhere.

We also have the below debts

Secured loan: £24,000
Unsecured: £22,000

We want to consolidate £20,000 of the above unsecured debt so we can work on paying everything off and get ourselves back on track.

Our joint income is £46,000 before tax

Monthly Salary £2450
Outgoings (before mortgage/unsecured loan and unsecured debt repayments) £840


I think that's everything? so I have a few questions:

What is the likelihood of being accepted to remortgage based on our current situation?

What should we expect from the remortgaging process and how long would it usually take?

Any other comments and suggestions would be really welcome!

Many Thanks
Nikkei

CloudCuckooLand

You won't be able to consolidate, that would take you over 100% LTV.

The debts will hinder re-mortgaging.

Visit the debt-free wannabee board, post your SOA and follow the advice on how the debts can be eroded.

VIGILANT22

I guess you have a Together NR mortgage or similar with the secured/unsecured...however you have taken an additional security/2nd charge. Most lenders now want to see the 2nd charge paid off before remortaging...this would make yr LTV in excess of 90% ...and you wouldnt find a mortgage for that ltv.......

Even if you tried it with the unsecured it's likely to fall down on affordabilty
and of course you have the erc's of £4733.80

I'm afraid yr stuck with what you have for now.........

Nikkei

Hi Cloudcukooland

I'm sorry I'm confused are you including the unsecured loan as part of the mortgage value? If so is that how the mortgage company would look at it?

Sorry for being confused this is all new to me!

VIGILANT22

doesnt make any difference if it is secured or unsecured you try to consolidate...all works out about the same ltv's

CloudCuckooLand

You have £110k mortgage.
And £24k secured.

= £134k at the moment, secured.

You also want to consolidate £20k of unsecured into secured.

= £154k total. On a house worth £150k.

That's more than 100% LTV. Which is not going to happen.

The only way to get better deals, is to eliminate some of the debts, not keep carrying them over, altering their status, which doesn't really deal with the underlying problems.

As I say, get to debt-free wannabee and seek assistance. You will be surprised at the slack that can be found in apparently tight budgets.

getmore4less

How much of this debt existed before Dec 2006?

If none, Income £2450pm average overspend £1000pm

Have you addresed this issue?

As others have said you are allready on a high LTV so unlikely to get a better deal than you have now from anyone else.

You need to target 80% LTV to get decent rates
on £150k value with £110k + £24k you are at 90%

If with NR if you move the mortgage the unsecured debt rate goes up.

I htink you will need to reconsider you options and focus on developing a debt reduction plan without remortgaging

DebtFreeWanabee is the lace to be.