Re-mortgage to consolidate debt

missmteacher

After taking time out to qualify as a teacher 6 years ago, I am left with a large amount of credit card debt. I now have a stable job with a good income. However, the monthly payments from credit cards and loans are crippling me. I am paying approx £700 per month (and that is just minimum payment). I have decided to remortgage, as my mortgage is quite low (compared to my salary). Went to Santander today (my current account is with them). However, apparently they have a new policy of assessing whether a customer can afford remortgage based on their existing credit arrangements (even though those debts would be cleared by the new mortgage). The guy at the bank explained this is because some people remortgage for debt consolidation and then don't clear the debt. He also said that not all lenders have this policy and I should be able to find a lender who would take me on. My question is, is anyone aware of lenders who would consider my application? Has anyone been in this position?

Dave_Ham

Done loads like this, and predictably none with Santander.

Many of the lenders will insist on the credit being repaid by the solicitor though, to avoid it being repaid.

You are likely that you may get a better rate too, so win win...

All the best...

Thrugelmir

Statistically people re-offend. That's the perspective the lenders take on the whole. There's no lesson learnt if an easy way out is given. Nor do lenders make as much profit.

Suggest you pay a visit to the debt free wannabe board. Over there people get by on very little. While tackling their problems head on.