adding debt to remortgage figure

hoothoot

Hello all

Not been here for ages. Am rapidly approaching the end of our fixed rate mortgage with Britannia (4.24% - their SVR is 4.74 at the moment so in August will go up unless we fix.

However, my credit file and the OH's are both awful. 1 late on each, and both overstretched (no defaults or anything). Largely CC's used to start off OH's business (he's still employed not self employed, getting prepared) and the house.

Figures are:

House worth approx £155,000. We paid £150,000, but it was on market at £158,000 when we purchased 18 months ago.
Mortgage owing: £132,500.
= 85% LTV. (Current mortgage is 90% LTV 3yr fix Britannia ending August 2012)

HOWEVER, is there any way we could add all / some of our debts to the mortgage?

OH owes £5500 to Virgin, £4000 to Barclaycard (would love to clear Virgin on the mortgage)
I owe a total of £9k over 3 cc's, but one is 0% for 2 years.

Do the figures add up to add any of the debt to the mortgage that we have? We're currently paying:

£696.19 mortgage

£220 Virgin
£75 Barclaycard 1
£40 Halifax
£50 Barclaycard 2
£40 Barclaycard 3
£20 First Direct

Many thansk for any advice. My first thought is just bite my tongue, stay on Britannia's SVR for a bit and sort ourselves out, BUT would love to have one big figure to pay rather than loads. WAs refused a loan last month to consolidate and don't think Britannia would let us add debt to mortgage so would mean going elsewhere.

hoothoot

Incidentally, OH earns £22,500 and I earn £25,000 (Was on £27,300 but taken job much nearer home and don't need to commute now)

beecher2

Are you sure Britannia would value at £155k? Use this to see what they say to give you a rough idea
http://www.nationwide.co.uk/hpi/calculator/calculator.htm
Make sure you put in £150,000 and not £158,000 as the price it was on the market for will be irrelevant.

Does your 3 year fix definitely end after less than 2 years?

Consolidating debts is rarely a good thing and the most you could hope to add to your mortgage is £7k, if your valuation is accurate.

If you post a statement of affairs on the DFW boards you might get help with budgeting and work out which debts to target first.

The_J

Adding the debts up to 90% LTV is going to be tough. I would say sit on the SVR, or take a new rate with Britannia if it is better, and tackle the debts aggressively.

Simon_gloster

As J says, clear the unsecured debts is the first and only port of call.

I don't know of a lender that will do additional borrowing over 80% ltv or a remortgage application with additoonal borrowing over 80%. Would love ro be proved wrong though.

Personally I think you have 0%. The lender I work for would not entertain your debt consolisation plan unfortunately.

Thrugelmir

Drop onto the SVR. Get to grips with your budget. Make a determined effort for 6 to 12 months to slash your outgoings and bring your debt under control.

As has already been suggested pay a visit to the Debt Free Wannabe board. A great place to start your journey. A real eye opener as to how little you need to spend to survive.

hoothoot

Thank you all - our biggest payout at the moment is £503.00 a month to one of our parents, which finishes in Feb next year, sort of feel like we're treading water until then, but then we'll be able to make real inroads with our debt and clear it much quicker than we would if we added it to our mortgage. Thank you for the perspective.

Would Britannia do a full credit check to 'fix' our mortgage, or are we stuck on the SVR for the moment?

Thank you!