Mortgage Advice needed

dippitydoodah_2

Please can you read and advise what is the best course of action?

Joint annual income £95K

House value £320K
Mortgage £254K
Secured loan £92K
Unsecured debts £40K

What care the chances of a remortgage? The secured loan means negative equity but the loan company have agreed to be the second charge. So mortgage company would get first chance at any repossession. Not that there will be one!!!

Would be be able to combine the mortgage and the secure loan to make a total amount of borrowing £346K against a house only worth £320K. I know the secured loan company were happy to lend up to 125% of the value?

We have a credit score of 984 / 1000 according to Experian and have never missed any payments? Just at the moment we are on standard variable rate and would like either fixed or discounted rate?

Thanks very much

Dippitydoodah!

Mr_helpful

Could be entertaining this one as although secured loan doesnt mind being 2nd charge it will become 1st charge when mortgage is moved and so solicitor will have to move it back to 2nd charge (easy way of making money for solicitors). Not too many lenders willl be happy with this. Contact an independent broker or go back to original lender and negotiate better deal

JoeK_3

dippitydoodah wrote: »

Please can you read and advise what is the best course of action?

Joint annual income £95K

House value £320K
Mortgage £254K
Secured loan £92K
Unsecured debts £40K

What care the chances of a remortgage? The secured loan means negative equity but the loan company have agreed to be the second charge. So mortgage company would get first chance at any repossession. Not that there will be one!!!

Would be be able to combine the mortgage and the secure loan to make a total amount of borrowing £346K against a house only worth £320K. I know the secured loan company were happy to lend up to 125% of the value?

We have a credit score of 984 / 1000 according to Experian and have never missed any payments? Just at the moment we are on standard variable rate and would like either fixed or discounted rate?

Thanks very much

Dippitydoodah!

This is a classic 125% remortgage case. Currently there are around three mortgage lenders that will allow you to raise up to 125% of the property value. 95% of the 125% is secured and up to 30% is unsecured.

This can be arranged for you by a whole of market mortgage adviser in your area.

JoeK

herbiesjp

This can indeed be done with a few lenders

I was going to warn about having a good credit score but then re-read the post and saw your Experian details - so you should be fine

I would suggest talking to a fee free whole of market adviser to explain how these mortgages work (part secured loan, part unsecured loan) and show you some figures so that you will be able to see how it will affect you monthly

You may want an overpayment facility in order to bring the borrowing down asap and mitigate the negative equity scenario

HTH