Remortgage with Credit Card Debts

DisneyTheresa

Hi all,

We have a mortgage outstanding of £44,000 and credit cards debts of £22,000. These debts are mostly from when we extended the house and have/are 0% (I have been moving them around). In addition to this we want to borrow another £14,000 to repay my parents and a little bit of money to put away.

This will give us a total mortgage of £80,000 with a house valued at approx £250,000.
We want interest only, with the ability to pay lump sums off the capital.

When I ask for remortgage, do I have to say this is debt-consolidation? Our credit history is fine, no missed payments. I assume they will find these credit cards debts is I don't. I don't like saying debt-consolidation as I am worried we won't get a good rate. Can I say it is for extension of the house instead?

Hubby is self-employed, but has lots of years accounts. I need to be off work for the next year with my daughter, hence the reason for interest only and lump sum payments when we can.

Any advise appreciated.

Theresa

JA1000

Hate to say this but this does have 'spiral out of control' written all over it, however the fact you only have a mortgage of £44k on a house value of £250k.

Some questions
Why move the cards from 0% to interest payable? Why pay back parents on interest loan rather than use the spare cash you have now to pay back monthly. What you are showing is that you are unable to save even with a low mortgage.

I would post this on the DFW forum and see what advice you get in there.

DisneyTheresa

It doesn't have 'spiral out of control' as most of this was costs to extend the house.

Why move the cards from 0% to interest payable?
Because there are coming to an end soon and have been moved before and I would rather not have to keep moving the debt around. Also, they aren't really 0%, as still have to pay 3% each time they are moved.

Why pay back parents on interest loan rather than use the spare cash you have now to pay back monthly.
Because as I said I need to be off with my daughter, so I won't be working

What you are showing is that you are unable to save even with a low mortgage.
You are very judgmental and have no idea of our circumstances. I am doing what I think is best for our circumstances at the moment; this should improve after a year; but as it stands at the moment we cannot afford the £1000 a month payment (mortgage only a few years to run).

Theresa

_Andy_

DisneyTheresa wrote: »

Hi all,

We have a mortgage outstanding of £44,000 and credit cards debts of £22,000. These debts are mostly from when we extended the house and have/are 0% (I have been moving them around). In addition to this we want to borrow another £14,000 to repay my parents and a little bit of money to put away.

This will give us a total mortgage of £80,000 with a house valued at approx £250,000.
We want interest only, with the ability to pay lump sums off the capital.

When I ask for remortgage, do I have to say this is debt-consolidation? Our credit history is fine, no missed payments. I assume they will find these credit cards debts is I don't. I don't like saying debt-consolidation as I am worried we won't get a good rate. Can I say it is for extension of the house instead?

Hubby is self-employed, but has lots of years accounts. I need to be off work for the next year with my daughter, hence the reason for interest only and lump sum payments when we can.

Any advise appreciated.

Theresa

State what the mortgage is for - not do otherwise is fraud,

JA1000

What rate would you get on a mortgage? 3% is still cheaper than most rates.

I am not judgemental, just stating what isn't obvious as you haven't described the full circumstances.

What happens if it isn't enough, aren't you better to do a full £100k and then pay some back?

DisneyTheresa

JA1000 wrote: »

What rate would you get on a mortgage? 3% is still cheaper than most rates.

Looking at fixing for a couple of years. Yorkshire Bank are doing 3.69% (£1000 fee) fixed for 2 years. We would like to be able to overpay off the capital as and when we can. They allow 10% of the outstanding balance without penalty. Have gone in to the full details with them yet e.g. debts so not sure if they would take us.

JA1000 wrote: »

What happens if it isn't enough, aren't you better to do a full £100k and then pay some back?.

What do you mean?

herbiesjp

Debt consolidation is fine.

Same rates will apply.

This should be pretty straightforward assuming your income can support the higher mortgage amount

DisneyTheresa

herbiesjp wrote: »

Debt consolidation is fine.

Same rates will apply.

This should be pretty straightforward assuming your income can support the higher mortgage amount

Thanks very much, that's helpful :j

JA1000

£44k current Mortgage
£22k cards
£14K pay back parents and put a bit away

Without knowing the detail that could be £13k to your parents and £1k to you or the other way round

How much do you need - are you asking for enough if you are going to be off work.