Re-mortgaging+consolidating.Don't mention rent-a-room income!?

sashy

Could anyone suggest my way forward to a successful remortgage app. given that I’m self employed & on relatively low income of £14000, average over last 2 yrs. Additionaly I’ve rent a room income of around £4250 which is non-taxable & I hoped could be shown as extra income but enquiries to lenders indicate not; furthermore if a prospective lender sends a surveyor to my property & finds some bedrooms with locks on doors etc they probably won’t consider the property/application further.
Some figures:-
Existing loan required to re-mortgage = £43500
Credit card debt to consolidate = £16000

---

Total required = £59500

Realistic property value = £160000 Hence prospective LTV = 37.5%
I’m age 60 planning to work to age 70. Existing loan is interest only with a pension for security. Part interest part repayment on new loan. My credit score should be good.

On lending multiples 4 x income goes a long way to consolidating all debts, 4.25 & I’m there.
BUT, my enquiries to lenders suggests in calculating affordability they add in a ‘weighting’ based on my current card monthly payments, even though the new lending has gone to pay them off. (Supposedly I’m at risk of re-offending !) Coop Bank adds 75% of those payments. This upsets the arithmetic significantly. I have seemingly found one small BS who say they don’t apply this weighting but I need to double check.
Furthermore I'm a bit manic about too many credit checks.

Ideas I’m thinking of:-
1. Just extend mortgage term with my existing lender, Northern Rock, for the £43500; apply for an unsecured loan for remaining debt with say Sainsburys @7.8%. Staying with existing lender may spare me from 1 credit check footprint and may be no survey – but I accidently mentioned to them my rent a rooming in the property over years, so this may scupper things.
2. Get an equity release lifetime mortgage for possibly up to £43500, instead of current lender, and Sainsburys for the rest.
3. Get a ‘commercial’ buy to let mortgage then I could come clean about tenants in my house. (But remember I’m also in residence); also my accountant says rental income could be processed under a schedule D return and give a net profit of say £3200, and then provide legitimate extra income eligible towards lenders calculations. (only this 1 year’s figures would be available).

ALL and ANY COMMENTS & SUGGESTIONS GREATFULLY APPRECIATED

getmore4less

Fix your over spending problem first.

leave the mortgage as is or extend term if they will let you and just overpay your £16k debts.

Next problem is they won't extend the term for ever so you need a plan for the mortgage. you have left it all a bit late.

Another option is sell up/down size to something with no mortgage the current place is obvously bigger than you need.

Lodgers do not seem to have helped your finances enough anyway.

get debt free and live off the pension and income.

SouthCoast

A visit to The Debt Free Wannabee Board could be benificial.