Looking for a further advance on mortgage to pay of debts and reduce payments.

reversestick

You might get this all the time so sorry if it has been posted before, I couldn't see the same thing exactly in my quick search.

We have some fairly sizeable credits cards and loans outstanding which are squeezing us hard from month to month. We have a £170,000 mortgage with Halifax on a house worth £350,000 which is at 5% fixed rate for 5 years, we are 2.5 years into it, and are staring at a 5K ERC.

We approached the lender about a further advance of 25K on the current mortgage to do a few home improvements and consolidate the debts which would leave us £250 pm better off but they refused it after the credit search.

So the question...does anybody have any ideas as to how we could achieve what we want to achieve either with our existing lender or through any other means?

Any help gratefully received?

Thanks

Thrugelmir

One assumes that your salary/income levels are insufficent to meet the lending criteria.

Whilst transferring debt on your mortgage is ok in the short term. As interest rates will rise in the months/years to come your "problem" may not disappear in the longer term.

Suggest you take a serious look at your finances, and consider downsizing in order to reduce your debt burden. Better to tackle them head on, than gamble and lose the bet.

Annisele

You might get more responses if you post on the Debt Free Wannabee board. Post a Statement of Affairs (read the stickies on that board to find out how) and peeps should be able to help you.

_Andy_

reversestick wrote: »

You might get this all the time so sorry if it has been posted before, I couldn't see the same thing exactly in my quick search.

We have some fairly sizeable credits cards and loans outstanding which are squeezing us hard from month to month. We have a £170,000 mortgage with Halifax on a house worth £350,000 which is at 5% fixed rate for 5 years, we are 2.5 years into it, and are staring at a 5K ERC.

We approached the lender about a further advance of 25K on the current mortgage to do a few home improvements and consolidate the debts which would leave us £250 pm better off but they refused it after the credit search.

So the question...does anybody have any ideas as to how we could achieve what we want to achieve either with our existing lender or through any other means?

Any help gratefully received?

Thanks

Your lender has already refused it, as you've stated.
You could look at a secured (2nd charge) loan but expect much higher rates.

CLAPTON

how much are your debts
how much is your salary

ItMightBeUsefulOneDay

I'd recommend you head over to the debt-free wannabe board and post the question over there. Lots of people who are in or who have been in very similar circumstances as you and can give first hand advice on how to undig the hole you've got yourself into. With substantial equity in your home you are in a fortunate position that many would envy - take your time and make some wise, considered financial decisions.

Moving unsecured debt onto secured debt isn't generally a good idea and unless you address the root cause of the large credit card debts you'll end up back where you started but with a bigger mortgage than before.