Re-mortgage with lots of problems

mrssarahh

Hi - can anyone answer a few questions about re-mortgaging for me please?
Firstly, we want to re-mortgage to get lower repayments and also borrow more to consolidate some debts.
We have already been to our current mortgage provider but they can't help (more later about that).
Problems are:
1. I work part time and hubby is self employed for about 2 years only
2. House is 50% shared ownership
3. Earnings are considerably less than when we got first mortgage 10 years ago.
Our current provider will not lend extra money to shared ownership customers to consolidate debt - only for buying other half of house or for home improvements (really not sure why!!), self employed bit wasn't a problem for them as he does the same job as before, just working for himself now.
Is there anywhere we could try who won't kick us out the door after 5 minutes?!!

mrssarahh

Forgot to say, we do have A plus credit rating - one thing on our side!!

Thrugelmir

mrssarahh wrote: »

Our current provider will not lend extra money to [STRIKE]shared ownership[/STRIKE] customers to consolidate debt

With regards to mainstream lenders this is more or less the case across the board.

mrssarahh

Thanks, I thought that might be the case.

Is it worth going to a broker - would they be able to find anyone?

Thrugelmir

There's always the secured loan option. Though rates will be higher than mortgages by several %.

Best option is to pull your budget apart and find cost savings. Debt consolidation merely extends the pain. Doesn't cure the root cause.

mrssarahh

I've just been looking at secured loans - the saving on our monthly amounts isn't as great as if we re-mortgaged, but maybe an option.

Our budget has been well and truly ripped apart!! There really is nothing left to save on, the figures on the page which I can now change are the monthly repayments on loans & credit cards.

The debts are not out of control, mainly just down to setting up my husbands business with no money behind us, and living expenses before we had any work in.

The thing is, we really need the extra money on a monthly basis to see us through any times when there is less work about (winter mainly), so that we don't need to use credit cards and borrow from family every year.

The savings we make each month would be put against the overdrafts and saved to help us through these times.

There is just nothing spare to pay extra off the debts to reduce them at the moment, which is why adding it on to the mortgage really seems to make sense to us.

Another question though - if we move to another bank, does it matter to them what we are using the extra money for? We just want to borrow more than the current mortgage?

Thrugelmir

mrssarahh wrote: »

Another question though - if we move to another bank, does it matter to them what we are using the extra money for? We just want to borrow more than the current mortgage?

Your credit history and usage thereof will be very apparent to the new lender.

These are difficult financial times for many. So lenders will be acutely aware of what people are trying to do.