mortgage for debt consolidation

moomaaman

Hi Guys/Gals, some advice please if you would.
My santander fixed interest only has come to an end, now on variable. We were looking to remortgage to add 40k, to consolidate all our debts, and to change to repayment mortgage. Santander wont do it , although we will be paying off our debts they are considering our monthly outgoings and have calculated that we wont be able to pay those AND our new mortgage payment- Our argument is that these existing outgoings will no longer be applicable as we will have paid off the debt !

They have explained that it is their policy, as we may SAY that we're going to pay off the existing debt but won't.....

Santander even suggested we try other providers - I guess they're keen to get us off the interest only mortgage?

Will ALL mortgage lenders have a similar stance too ? Or will any take into account that our existing repayments will reduce?

Thrugelmir

moomaaman wrote: »

Will ALL mortgage lenders have a similar stance too ? Or will any take into account that our existing repayments will reduce?

Mainstream lenders mostly likely yes. Releasing equity to consolidate debt doesn't resolve the issue. As statistically people reoffend. Hence the reluctance to assist. People learn more by not having an easy way out. Very harsh but true.

(Should add not a personal opinion nor one directed at you).

Given that your unsecured debt is at far higher interest rates than the mortgage. Tackle this first.

Suggest you pay a visit to the Debt Free Wannabe board for support and advice.

moomaaman

thanks for your advice!