Remortgage and debts?

BLUEBIE

I have a query for my brother, wonder if anyone can help as I have no understanding of mortgages, ltv's etc!

Right he has a mortgage of 85,000, house is valued at 170,000.

He has debt of about £36,000.


What would be the chance of his mortgage lender letting him remortgage to 121,000 to pay of the debts?

When he uses the calculators on the websites he puts his and his wifes earning in and they say they could lend them up to 160,000.

However, he has been with his mortgage lender for nearly 20 years, never defaulted on the payments, did take two payment holidays when his kids were born though, which was allowed by his lender.

Has never defaulted on loan repayments, BUT has been late paying his credit card payments by a day or two fairly regulalry in the past, always paid but occasionally as day or 2 late, the same with the odd catalogue.

So whats are the chances? Anyone know?

Thanks

kingstreet

I'd say additional borrowing for such debt consolidation from his existing lender is highly unlikely and the rate will be pretty poor.

He may find a remortgage application to a new lender for the whole amount more successful, but many lenders are going to look very carefully at affordability.

He should also think carefully if he plans to roll unsecured debt into a mortgage as he's risking his home and rescheduling short-term debt over a longer period is a false economy, unless he uses some of the savings he makes to pay the mortgage off faster.