Remortgaage / further advance

BLUEBIE

Hi

I did ask for advice for my brother last week but I now have further info so am asking again.

Right he has a house worth £170,000, mortgage of 88,000. Mortgage lender tells him this will put him in the 40 (something %) ltv region. He has debts of about 36,000, paying about £1000 per month for. He wants a further advance of 36,000 to pay of debts. This would cost about £200 more on his mortgage per month, apparntly putting him in the 60 (someting %) ltv ratio.

Now the mortgage consultant said that looks good lets do an application. However its down to affordability and credit score. The fact that he is paying £1000 per month at the moment and will only be paying £200 per month after has to work in his favour no?

but what do the look out for on the credit score? He has been late paying catalogue bills etc, never missed a payment but sometimes a couple of days late.

I know he could just apply and see but if they turn him down his plan is to sell and buy a smaller property using some of the equity in the current house but will still need a mortgage approx the same as he has now. I'm worried that if he does this applicationa nd it has no chance, what detrimental affect will this have if he decided to down grade but still needing a mortgage. He has tried to make an appt to speak with his mortgage lenedr face to face but they seem to want to do it all over the phone and its hard to get across what you want like that.

Also if he got the £2 credit report, can't remeber which company its with, what does it tell you, would it give enough info? We both have done the noddle one which tells you nothing?

Thanks

B

Dave_Ham

£2 stat. reports from Experian and Equifax..

You have to trust your broker, or get another one as they are better placed than us to tell him which way to jump.

It sounds as if it should be straightforward, although we do not have the full picture.

BLUEBIE

Thanks, he doesn't have a borker, always been with the same mortgage company since the beggining nearly 20 yaers ago, always dealt with them direct. Noddle credit score was 3/5 which is bang in the middle I guess.

Dave_Ham

Noddle is the least important one, check Experian and Equifax and that will give you/him an idea..

Check with existing lender to see what available and check he is not tied in with lender.

Then have a look across the marketplace and see what is the best option...