Remortage Questions

BackOnTrack

Hi Folks,

I was hoping someone could help with some advice with some questions regarding a remortgage.

The application will be done by my wife, soley, and is for an increase in her mortgage from £60,000 to £100,000 on a property valued at ~ £250,000.

My wife has £30,000 unsecured debt, the primary purpose of the mortgage is to get rid of this unsecured debt and also to allow us to prepare for having children in the future.

My wife earns £40,000 per annum and I earn £33,0000 per annum.

My wife has a clean credit history, all credit card and mortgage payments made on time.

I have a settled default on a credit card from october 2006 blighting my record.

We have a joint bank account as well as our own seperate bank accounts.

Now the questions:

1. Am I right in thinking it is a no brainer to keep my name of the mortgage appication because of my settled default on a credit card?

2. With this default on me I am worried about the joint account linking her to me. Will closing the joint account take care of this or is the damage of her being linked to me already done?

3. She was already declined a remortgage from the bank that provides the current mortgage, Nationwide, because of the unsecured debt she has and we are now using a mortgage broker, London and County, to try and maximise the chance of success, the broker has already found a mortgage where they believe she will be successful. Is there anythign else we should do to maximise the chances of success?

Thanks for taking the time to read this:)

TEDDYRUKSPIN

Does not make complete sense.

Am I correct to assume that the house has both your names on it? If so, both of you must be on the further advance loan application. You will be told this by the mortgage adviser.

If nationwide has declined her application before, this will be the same for others. Only rip off mortgage lenders which offer extortionate rates will clear the debt for you.

It will take another two years until your bad credit is wipe of your history.

BackOnTrack

TEDDYRUKSPIN wrote: »

Does not make complete sense.

Am I correct to assume that the house has both your names on it? If so, both of you must be on the further advance loan application. You will be told this by the mortgage adviser.

If nationwide has declined her application before, this will be the same for others. Only rip off mortgage lenders which offer extortionate rates will clear the debt for you.

It will take another two years until your bad credit is wipe of your history.

No the house is only in my wife's name, we could add my name to the deeds but there seems little point unless as I have a defaulted loan.

As only my equifax credit report shows the default, not sure why this is, I am contemplating applying for a loan from a company which uses experian for credit checks to take on some of her unsecured debt. If we get rid of the joint account is this likely to help?

Thrugelmir

BackOnTrack wrote: »

My wife has £30,000 unsecured debt, the primary purpose of the mortgage is to get rid of this unsecured debt and also to allow us to prepare for having children in the future.

£30,000 of unsecured debt will be a major stumbling block in remortgaging with a main stream lender. With limited funds available lenders can choose their customers.

With a joint income of £73k and a mortgage of only £60k. There should be no reason why you couldn't reduce the unsecured debt significantly in a short period of time.

Once the debt is reduced you may find more options available.