How much can we borrow?

oliel

Have a house worth between £260-300k. Income is as follows, £21,500 guaranteed income for hubby plus historically last 3 years extra £3000 overtime/callouts, My salary £15600 part time -both employed plus £1500 in child benefit per year. Current mortgage is £122000 want to increase to £148k to consolidate all our debt. Is this possible? Was looking at a fixed rate. Previous credit checks have shown an excellent credit score.
Thanks

Thrugelmir

Not sure you will find many lenders willing to consolidate £26 of unsecured debt. In this regard your credit score is meaningless. As the debt shows a lack of personal responsibility in handling your financial affairs.

You need to consider ways of reducing your overall debt to make it more manageable.

oliel

Its fairly manageable at present, but if interest rates rise may not be, current mortgage has a redemption penalty until end of jan 2013, should i keep an eye on interest rates and go to a fixed rate once i dont have a redemption penalty anymore? Am working on trying to reduce my debt asap.

oliel

should also pint out other debt relates to improving house - extra bedroom, new bathroom etc.

kingstreet

Assuming you have two dependent children and will have no outstanding credit, Halifax affordability calculator indicates a borrowing level of £153k over 25 years, on £250k. I scaled back the property value to be on the safe side.

This does drop to £140k on a shorter, 20 year term.

This is based on a C Pass credit score.

I would expect other lenders to also offer the amount you're looking for.

Vincenzo

Have you spoken to your lender about a further advance?

oliel

have been to see an fa today - he suggested further advance also checked my credit rating which is still excellent am in the process of applying for further advance - would save me about 250 per month 100 of which i plan to use to overpay new mortgage should we get the further advance.

kingstreet

oliel wrote: »

have been to see an fa today - he suggested further advance also checked my credit rating which is still excellent am in the process of applying for further advance - would save me about 250 per month 100 of which i plan to use to overpay new mortgage should we get the further advance.

Is your current deal too good to give up? I would imagine this is a very good option if you're on a very low tracker now?

oliel

yes i am on a good tracker rate. do you think it is likely they will lend this to me?