Remortgaging to consolidate

bitgiggy

Hi
Looking for a bit of advice for any mortgage experts out there.
We have a £20k balance outstanding on our mortgage, which has 8 years left on it. We also have a secured loan with an early repayment figure of £60k, currently payable over the next 23 years.

We have recently had a massive overhaul of all our finances, and the mortgage/loan is the last thing we need to tackle. Our intention is to combine both amounts into one payment a month - we wish to pay this off in 8 years (which is manageable considering what we pay on both now).

We have already approached our current mortgage provider, Santander, about a remortgage. They have said that as the intention is consolidation, they only lend up to a maximum of £35k which is of course less than we need. What should our next step be? Should we approach a broker to look at other lenders? How would we ensure that they realise we are going to be paying off our other two debts, so the remortgage does not seem unaffordable?

Thanks

CLAPTON

what are the interest rates on the mortgage and the secured loan

can you overpay on these loans?

bitgiggy

Hi

Our mortgage is currently on a SVR (which escapes me at the moment) my main concern really is the secured loan. The reason we have it is that we had a few financial difficulties a few years back and consolidated our debts - the interest rates are therefore extremely high and combined with the extended payment terms we are paying a hell of a lot more back when we could easily make the same payments now with a reduced term with a more reputable high street lender. (The secured loan is with Blemain finance)

CLAPTON

you haven't actually answered my questions

and
what's the value of the property
what's your income
what do your credit files say

GMS

Get a settlement figure from Blemain and speak to a broker.

What is the property worth? What are your incomes? Any issues with credit in last 6 years?

Santander SVR is 4.74% and lord knows what Blemain are charging you.

bitgiggy

We obtained a settlement figure before Christmas which was approximately £60k so may have reduced a bit since.

Our property is worth around £230k, we have combined earnings of roughly £48k. Our credit file is good, although unfortunately over the past few years we have missed mortgage payments here and there.

GMS, you are correct in that the SVR is 4.74% - I am going to dig out our Blemain documents to see the actual interest rate on that.

CLAPTON - I am not entirely sure about overpayments, however I think in all honestly making overpayments at the moment would be a bit of a stretch, our main concern is to move our Blemain loan to another lender with a better interest rate, so we can still pay the same amount but pay it off quicker.

getmore4less

bitgiggy wrote: »

although unfortunately over the past few years we have missed mortgage payments here and there.

More details how many and when, this does not look good.

Consider you say you have had a full overhall of your finances not knowing the interest rate on your biggest debt is a bit of an oversight

getmore4less

whats the monthly payment on the loan(60k or whatever is outstanding) over 23 years

what rate are you using for an 8 year payback

Dave_Ham

This is a no brainer.

Get your Experian, Equifax and Call Credit files - £2 statutory reports are fine and speak with a broker.

Get yourself away from Blemain and Santander and you will have a stand out lower monthly payment or a shorter repayment term.

Good luck

bitgiggy

Dave_Ham wrote: »

This is a no brainer.

Get your Experian, Equifax and Call Credit files - £2 statutory reports are fine and speak with a broker.

Get yourself away from Blemain and Santander and you will have a stand out lower monthly payment or a shorter repayment term.

Good luck

Hi Dave

Thanks for the advice - I have an Equifax report less than 30 days old, is it worth getting all 3? Potentially may they show different things?

Thanks

kingstreet

Yes. Your credit files will not necessarily match.

You need to get hold of all three of your statutory credit files;-

Equifax - already got

Experian

https://secure.wiseconsumer.uk.exper...x.html?data=00

CallCredit

https://www.callcredit.co.uk/stat-re...pl=regPurchase

which you should take along to a meeting with a good independent or whole market mortgage broker. Ask friends and relatives for a recommendation. Failing that, use https://www.unbiased.co.uk remembering to switch off "sponsored ads only" option so you get a full list, not just the paid-for adverts.

The £2 statutory paper files will be fine. Avoid online schemes you have to pay for which give you your inside-leg measurement and call it a "credit score" as this is different to the lender's, the one which actually matters to you...