Remortgage with N&P - possibility?

Billy-no-Money

I know this is a question with only one answer - speak to my curent lender (Norwich & Peterborough) but I'm looking for some thoughts on how it could go and what I might consider asking.........

You'll see from my signature that I'm a DFW, with what is still a sizeable debt - it was approx £50k three years ago and is now under £33k. I've done this without consolidation and without entering into a DMP, IVA or whatever, as I've had the income to pay over £900 a month using the snowballing approach and I wanted to prove to both myself and my wife that I'm capable of financial discipline. I was also anxious to keep my affairs separate from my wife apart from our mortgage as it's my debt, not hers.

Unfortunately my wife's going to go onto reduced hours soon which will leave us as a household approx £500 a month short. Obviously she's looking for alternatives but that could take months in the current climate.

We can make some economies for the short term, and I can make minimum payments so can free up £200 to £250 approx, but as an established DFW I'm already living pretty frugally. I can't see how we'll cope with the reduced hours, even for a few months, without me having to negotiate with creditors.

With all this in mind we're considering a remortgage, which would need to be with our current lender as we're in a fixed deal with four years to go. My question is, in the current market do we stand a scooby of getting a remortgage for consolidation purposes and/or will the interest rate be higher?

We've been paying the mortgage for seven years, originally £53k, now down to £41k. My job's reasonably safe for the next few years, and I've been with the same employer for ten years.

The house is worth around £110k (based on recent sales in local streets) so we'd be looking at an LTV of around 70%. The total loan would be about 1.5 times my annual salary, and I'm in my mid forties.

Ideally I'd be able to overpay, so when this temporary blip is over I can get back to throwing £900+ at the loan, but I'd also like to fix for a few years so that might not be an option.

Has anyone else done anything similar recently? Would N&P regard my current debt as unaffordable even though it's much lower than it was?


Many thanks.

GMS

Try their website and put your numbers into the affordability calculator.

They may have issues with debt consolidation of that level though.

As you rightly said yourself, the only answer worth having is the one you will get from N&P

Good luck

Billy-no-Money

Thanks GMS - I have a very clean credit record, my problem is simply the size of the total unsecured debt. I can demonstrate that my debt has come down by a third and I'm happy to share relevant records with the lender if it helps, but I expect it won't get to that stage if they simply look at the total and reject me.