mortgage with high debt to earnings ratio

[Deleted User]

As above ,can ayone please help ,iam looking for a lender who will lend to someone with £35,000 of credit card debt but also who has never missed a payment on anything.my salary is around £25,000.
Need to remortgage asi looking at the interest on one of my cards,i feel iam just throwing money away.
my house is worth around £80,000 and i owe £53,000 but my bank rbs has turned me down because of the credit cards!!!:(
also iam currently on an offset mortgage.

WestonDave

Its all about affordability. You have take home income on £25k of around £1600 (plus wifes income?) and monthly minimum payments of around £800 (based on your 2007 figures) for your credit card debts before your mortgage payments. (You don't appear to have shifted any debt since becoming concerned about it 4 years ago - if anything its worse.) Mortgage payments were around £400 per month then - have they dropped with interest rates? I'd expect them to be nearer £180 per month for interest plus something for capital. Committed outgoings of £1000 to £1200 on £1600 income is very high and this is where you are getting turned down I would imagine. The irony is that if you get the mortgage the other outgoings will decrease, but the mortgage lender won't necessarily be able to factor that in - so in effect you are asking to increase your mortgage outgoings by say 50% on top of the £800 other debt payments. In their view that is unaffordable.

You might be better trying to switch to interest only for a short time, and using the spare cash from not repaying capital to clear down some of the more expensive cards - start with the highest interest ones and get rid of those.

_Andy_

Don't think any lender can help you. At 3% your min CC repayment is £1050 which is around 2/3 of your income, that's even before the mortgage is taken into account

[Deleted User]

thanks for the replys lads,ive been pretty stupid over the years with these cards(belive me i had my reasons) majority are on low balance for life cards,so not that bad the one that really sticks in my throat is the halifax one card,way too high.lol also i daftle thought if i paid everything that my credit would still be good...had never even heard of that
affordabilty calc stuff the banks use?
kind of stuck now unless i sell my house and then would they even give me another mortgage for another one???
once again thanks for replying lads.

_Andy_

Whilst the CC debts remain at that level, you're not going to be able to get another mortgage, either via a remortgage or another purchase.
I would suggest posting a statement of affairs on the DFW forum so you can get a plan together on tackling the CC debt.

[Deleted User]

_Andy_ wrote: »

Whilst the CC debts remain at that level, you're not going to be able to get another mortgage, either via a remortgage or another purchase.
I would suggest posting a statement of affairs on the DFW forum so you can get a plan together on tackling the CC debt.

might just do that cheers mate.......