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Remortgage question
crisis_management
Posts: 28 Forumite
Hi - I'm looking for some advice, if possible. I have a mortgage at present, repayment, interest around 5.5%. It's about 9-10 yrs into a 25 yr term, and only represents about a third of my home equity. Until now, I had lagre cc debts, so I didn't bother trying to remortgage as I presumed refusal. However, i am now in a position to clear these debts. Should I try to remortgage now, or wait for 6 months to improve my credit file?
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Comments
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You haven't said whats wrong with your credit file... other than previous big credit card debts. Have you had late payments/defaults/ccjs/mortgage arrears?0
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Having large debts does not mean having a bad credit file - it would simply reduce the amount a mortgage lender would look to agree on a mortgage for you.
As long as you have cleared the debts, or advise the lender that it is your intention to clear those debts, the lenders should work out your mortgage potential based on your full income with out making any deductions.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
No, never missed a payment, but thought that the existing debt would be a problem0
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crisis_management wrote: »No, never missed a payment, but thought that the existing debt would be a problem
As previously mentioned having the debt is not necessarily an issue. The way the accounts are managed is the key to it.
A £20,000 well maintained debt would be looked upon much more favourably than a £1,000 badly managed debt.
All applications are different and need to meet criteria for the lender.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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