Re-mortgage help

Fox137

Hi, newbie here

Recently visited The Bank of Scotland to review my finances and looking to borrow an additional £28k to repay all my debts, add it on to my mortgage and extend the mortgage. The remortgage was to be done by Halifax but they have declined me. My credit rating is above average, mortgage advisor said there were too many searches but I have checked my credit files and that doesn't seem to me to me to be a real issue.

I am going to see a mortgage advisor, what are the chances of me getting a re-mortgage? There is sufficient equity in the house and it will be less than 75% ltv. Given the debts showing though, is it likely I'll be continually turned down based on affordability? All be it that clearing the debts will make it very affordable

Dave_Ham

Stop, before you do anything; you need your Experian report.

Halifax would not have declined you based upon too many searches, definitely.

Your score the reference agencies give you is irrelevant, but there will be something on your credit file causing an issue.

I have assumed this is declined on credit score, based upon them saying too many searches (which is genuinely rubbish)

Get your Experian, let us know what is on there and can comment further...

Good luck

Fox137

I have reports from Equifax and Callcredit (through My Credit Check). I have ordered my experian report. Worst there is, is 2 '1' s one for last year and one in 2011.

I can only think that my affordability is not looking good, but all my debts will be cleared with the extra borrowing.

Fox137

Been to see a mortgage broker who says that if Halifax have declined me then she won't be able to get me a mortgage as they are usually her last resort high street lender.

She's going to look at Precise but from what I can tell, living in Scotland she could only look at the near Prime.

Does this seem like reasonable advice?

Thrugelmir

Fox137 wrote: »

and looking to borrow an additional £28k to repay all my debts,

To be blunt there lies your problem. Many lenders won't be willing to risk debt consolidation. In the eventuality that you run up debts yet again in the future. .

EMac_2

I think your adviser is maybe being unnecessarily negative if what you say about the credit report is the only issue you have. Halifax can throw up some bizarre responses and I have seen cases declined in branch accepted via broker and visa-versa. Depending on your ltv and overall affordability I would maybe look at other high street lenders to avoid the higher rates at Precise. Depending where you are in Scotland Precise may lend but they don't lend everywhere on the mainland.

Another option, if you have the equity, could be to keep your mortgage as it is and get a secured loan to pay off the unsecured debt and reduce your outgoings but you must keep in mind that whilst securing debt may reduce your payments you can end up paying more back over the longer term. Best of luck

Dave_Ham

Unless youhave your Experian, Equifax and Call Credit reports; we are just guessing and so is your broker.

Halifax are highly likely to have declined for a reason and therefore we need (or importantly you need) to know what that is.

Start with the credit files and work forward, rather than punting on a lender and working back.

All the best

Fox137

Well.. Precise gave a DIP at 5.59% £1000 fees and £350 valuation report. Not great at all but would get me out the mess I am in. However, mortgage advisor said she would try 3 main stream lenders 'just in case' and I now have a DIP from Nat West 3.29% fixed for 3 years, no fees, free legals and free valuation. To say I am delighted is an understatement