Further advance on my mortgage

Madders · 23 August 2012 at 12:08AM

Hi, first time poster here so please be gentle.
Following an acrimonious and expensive divorce I have had to start again in life. I took up a mortgage with Nat West, whom I've banked with for nearly 25 years and was able to put 20% down which pretty much wiped me out financially. The house, a repossession, was bought in July 2011 for £112000 and desperately needs work doing. I was turned down for a further advance of £26,000 which would have allowed me to pay off a loan, which I have with Nat West and was able to retain, following divorce:mad:, pay off money which I owe to my Mum and to do the required work on the house. When I sat down and did the figures with the bank, paying off the loan and paying the new larger mortgage, I would actually be £100 a month better off. I was declined, twice, despite being proactively courted by the bank and was told this was because I'd gone beyond my overdraft on numerous occasions recently. This is true however these indiscretions were very minor and very brief as I would juggle money around to correct this within a day or two.
Now, I was told, after the last failed application that I needed to stay within my agreed overdraft limit for a period of time, and I have done so for the past three months. I am in secure employment and have paid all my other commitments on time with no problems. I believe the work I will do on the house will raise it's market value to £140000, a local estate agent said £150000 but I'm trying to be realistic. I'm just scared of being rejected again as I'm in a new and stable relationship but haven't put my fiance's earnings into the equation and we'd like to start a family of our own.
Does anyone have any views on the likelihood of success when I reapply in October. Any help or advice would be gratefully received.

Thanks

Madders

Thrugelmir · 23 August 2012 at 8:04AM

Lenders on the whole will not be interested in debt consolidation. As doesn't resolve the fundamental issue. Yes you will be a £100 better off. But only while interest rates remain low.

Wh05apk · 23 August 2012 at 8:39AM

The issue here is likely to be that you are already at 80% LTV, lenders generally limit further advances to 80/85% for debt consolidation, once the work is done, you may be ok getting a further advance up to 80% again, but again this will be subject to credit checks/account performance.