Remortgage advice required

Dino07

We are currently looking to remortgage our property and ourlooking for some advice. We have seen alocal mortgage advisor who has checked out our credit files and advised us thechances are very unlikely.
Current situation is as follows:

· Property is worth £200,000

· Mortgage is with UBC with 44,000outstanding. 7 years remain on themortgage and payment are just under £200 per months

· There is a second mortgage/secured loan with GEMoney. 5K remains on that and thepayment are around £225 per months over 2 years
There have been 4 late payments to GE Money in the last 12months although everything is now up to date.

Self employed, Ltd Company with balance sheet currentlyshowing 29k.
We were looking at around £100,000 over a 15-20 year periodenabling us to pay UCB, GE, extend the mortgage length and the remaining 50would go towards some very small debts and mainly personal use.

There is equity in the property which I assumed would go along way towards being able to remortgage the property but the mortgage advisorseems to think otherwise. I was hopingto get more information here so I appreciate all advice given. I don’t think I’ve missed too much out.

Thrugelmir

Releasing equity will require a very clear purpose to be acceptable.

Mortgages are intended for house purchase. Not cheap financing for business or other uses.

4 late payments in the past 12 months does not instill any confidence (said with a business hat on).

Lenders are not so much interested in security for debt, but hassle free repayment of debt.

Dino07

I understand that completly in regards to the late payments. Unfortunately being self employed, there are always short periods where things are not as good as they can be but we did quickly catch up on them.

I assumed remortgaging and releasing equity would be seen to different compared to a applying for a new mortgage. Half the amount i'm looking for is to pay off the existing mortgage.

The remainder is for personal use only so absolutely nothing connected to the business.

The mortgage advisor we have seen has gone off the credit files only without actually making an application so we were hoping to see what our best options might be and whether some companies are more flexible than others.

Thrugelmir

Dino07 wrote: »

I understand that completly in regards to the late payments. Unfortunately being self employed, there are always short periods where things are not as good as they can be but we did quickly catch up on them.

Again from a lenders perspective. The onus is on you to save for rainy days. Not default on contractual arrangements to pay.

Dave_Ham

Hi there,

I appreciate your frustration, however 4 late payments is really a killer blow and not just to remortgage but to raise finance will be tough.

Do you need this right now, or can you nail 6 good months on your credit file and then fly through (with a much better rate to boot)

Dino07

To be perfectly honest, i could really do with it now. Or even a loan of some sorts in the region of 10k.

However i do understand mortgages are no longer as easy to obtain and 4 late payments can have a damaging effect. I'm currently in the process of ensuring everything is up to date now and there are no late/missed payment from now onwards. It's just the dilemma in currently in i guess!