Halifax Additional Borrowing - Please Help!

Nervo1234

I'm looking to apply to Halifax for some additional borrowing on my mortgage, currently the mortgage stands at £63,000 Interest Only over 13 years! The property is worth around £320,000 - plenty of Equity left!

Am looking to release around £50k on this particular mortgage to pay off a credit card (£15k) and do some home improvements.

Recently got a credit report and it is 999/999 - absolutely perfect!

Will Halifax have any issue about releasing a large amount to me with £15k currently outstanding on a credit card?

Can someone with experience please advise! Much appreciated.

Giddytimes

It really depends on your income. They won't release it to you if they don't think you can meet the payments, regardless of the equity in the house.

BTw a mortgage can't be interest only over 13 years? It's either interest only or it's repayment over 13 years.

Nervo1234

It's a joint mortgage with my wife! Our combined household income exceeds £50k a year, both of us have perfect credit reports and have never missed a payment with our Halifax Mortgage!

Sorry, your right! Miss typed.. The remaining period on the mortgage is 13 years!

Really need to get £50k released urgently!

Giddytimes

The Halifax mortgage calculator here-

http://www.halifax.co.uk/mortgages/forms/minicalc/container.asp

Indicates they would lend you that much based on your income and credit card commitments, if your wife doesn't also have debt commitments. Give them a call and see.

I have read posts where people have been turned down when they have said the remortgage is for debt consolidation though, probably because most people who consolidate tend to run the credit cards back up again (of course you need to make sure you know how you run the 15k up to start with-so you can change your habits to prevent it happening again).

Perhaps best to say the remortgage is for house improvements, which you believe will increase the value of the house (you're not actually lying, as that is mainly what it is for).

Incidently are you so desperate for the money now because you are struggling to meet the credit card payments? 50k mortgage over 13 years is unlikely to reduce the monthly payments you're making.

Nervo1234

Have had alook on Halifax website, am looking around £350 a month on a fixed rate for 3 years on £50k - would be great if I can get the £50k on Interest Only, however I think this would be difficult!

Would Halifax require proof of Home Improvements?

I had loaned someone £15k in an emergency through cash advance on credit, very stupid but he was desperate! Can't see it being an issue with Halifax! My mortgage history and credit report are spotless!

opinions4u

I think your biggest issue is going to be the interest only side of the existing mortgage.

The additional £50k will need to be on a repayment basis unless you can demonstrate that you have a repayment vehicle in place.

But they may ask you to provide the same for the existing debt.

They may ask for proof of what the loan is for. Credit card statements and builder's estimates should do the job. There may be more questions asked if any of the work affects the structural integrity of the property.

Additionally, expect to be asked questions about £15k cash advance. As a former underwriter I'd want a major explanation.

Given the income and equity there shouldn't be a problem. But interest only / consolidating cash advances and nearly doubling the existing balance mean it's not a formality.

Nervo1234

So if the additional borrowing was a repayment scheme then it should be fairly simply hopefully?

I have an endowment policy for the £63k of the remaining balance.