Remortgage - Credit card Debit - Can we Remortgage and add our huge credit card debit

OMEGA3

Firstly I just want to say thank you to Martin for providing this excellent website - I would not have known where to look for help otherwise so thank you Martin.

My question is this... I have run up about £30,000 in credit cards whilst I was suffering from depression and unemployed - to many personal reasons to list. This was done over a five year period. Although I believe the credit cards should not have kept offering the money I do accept some of the responsibility. Depression blinds you from all things and although I am not totally free of it I am in a good job and getting by and without family support I would not have come this far. That’s a little bit on my background.

My main question if anyone could kindly help is this... I have a mortgage which is variable rate and about £50,000 left to pay. What can you guys suggest to help me with some ideas to get rid of my Credit Card debit. Its around £30,000 at the moment. Is it possible to add CC debt this to a mortgage? My mortgage is with the Abbey at the moment but I don’t know who to talk to about doing anything... I guess I am so scared of what people think or how the Abbey will react if I tell them. I am not tied in with the Abbey as I said its now on variable rate so do I have to use them or can I use anyone else? If you know of any specialists in this area please let me know - should I try to contact a mortgage broker? I would very much appreciate any help or advice. Also if you have any tips that may help... I need some help as the credit cards are crippling my family and we can do anything. We so want a holiday and have not had a break in ten years.

I have been back at work for just over one year and my wife has been working solidly since 1996. She is certainly the backbone of our relationship but we are both at worlds end and do not know the best way forward for the four of us.

JoeK_3

So sorry to hear of your plight.

The good news is that you are back and on the mend.

Please post your details as follows:

Property value
Incomes
Any adverse credit history

Hope to help

JoeK

OMEGA3

Hello JoeK thank you for responding - here is the info:

Property value - Approx £170,000
Incomes - Combined £36,000
Any adverse credit history - NON

JoeK_3

OMEGA3 wrote: »

Hello JoeK thank you for responding - here is the info:

Property value - Approx £170,000
Incomes - Combined £36,000
Any adverse credit history - NON

Based on your your post, you should have no problem finding the best UK rates to suit your circumstances.

Consider the following:

Step 1: Contact Abbey and ask them what better rates they have to offer to existing borrowers, including fixed rates.

Step 2: Investigate moving your credit cards to 0% interest and start to attack the capital at your affordable monthly figure.

JoeK

*EssEncE*

Aslong as what you have said is correct and you've a clean credit history (ie no adverse) you've should have a good choice of products available to apply for.

Go see a mortgage broker who sources 'whole of market' to discuss further.

The sooner the better, due to the fact your on SVR (Standard Variable Rate) at present, so your paying OTT interest.

All information you provide to a broker will be kept confidential.

As a guideline, you'd probably pay around BBR (Bank Base Rate, currently 5.50%) for a 2-3 year fixed product.

Good luck..

OMEGA3

Thank you so much guys for helping out here.

Is there anymore info you need that may help?

Can I add the CC debt to a new mortgage or is it best to try to get lower rates?

I notice you both have links to your own websites on your profiles and I will be using them to contact you to see what you can do for me.

*EssEncE*

Without doubt it will be cheaper in the long run if you could seperate your CC debt and structure an attack. Like JoeK has suggested aim at transferring your balance to the many 0% balanced transfer offers and then cut away the capital each month with your disposible income.

However if you cant trust yourself doing such then consolidating on a mortgage is perhaps best. But again securing more on a property carries risk in that your home come be repossesed etc.. and you'll be paying more interest in the long run.

Im sure your aware of that though.

OMEGA3

*EssEncE* - thanks for responding.

Believe it or not I am fairly switched on but my head has been in the sand far too long and I need to pull it out. FEAR and Embarrassment are my enemies here and I need to try to control it. Not wanting to be seen as a beggar or cheap skate for asking for lower rates etc is at the back of my head. In truth I don't know where to start so this is one of the reasons I am here to try to bring things out and to give myself a wake up call... I need a kick up the rear so your comments are warmly welcomed :-)

At the moment my mortgage rate is variable - I know we need to do something about this so if you can help I will give you a call on Monday.

JoeK_3

OMEGA3 wrote: »

Thank you so much guys for helping out here.

Is there anymore info you need that may help?

Can I add the CC debt to a new mortgage or is it best to try to get lower rates?

I notice you both have links to your own websites on your profiles and I will be using them to contact you to see what you can do for me.

Please note that there are lenders out there that will allow you to remortgage over your existing outstanding term and allow you to take out a loan to pay off your credit cards over a shorter term but both of these will be at the same interest rate.

Regards

Joe

OMEGA3

I have just got off the phone form MBNA. I wanted to transfer £7,000 from another Natwest CC and then transfer £7,000 back because NatWest are allowing 6.9% for the balance of the CC with no fees! MBNA wanted to know my new financial details and as a result locked both my MASTER CARD and VISA CCs and they wont even help us out by lowering the CC rates (they say now the accounts are locked we cant do anything!)... Here is what I currently owe:


NATWEST: £7,000 - rate 18%
MINT: £6,000 - rate 24%
MBNA - MASTER: £5,000 - 6 month 18.9% - NORMAL23%
MBNA - VISA: £10,000 - 6 month 19.9% - NORMAL: 25%


£28,000 CC debt - this is crippling us each month!


£50,000 mortgage currently paying the Abbey £400.00 PCM - property is worth about £150,000 - £170,000.


What can I do here guys... I cant get any more CC to try to lower the rate as I am at my Max. Do I try to get a loan or try to get a new mortgage with the £28,000 CC debt and my mortgage of about £50,000.

Also my wife is in full time employment but sadly I am classed as an agency worker even though I have been working for the same firm for 1 year and 5 months.

Any more help and advice would be extremely appreciated. I feel really depressed so if anyone can offer any advice please let me know.

Up date... I complained to MBNA and said it was unfair of them to lock the cards not allowing me to ask for competitive rates so they said... I have Mr... on the phone with me and he has unlocked your account while we look to see if we can reduce the rates... MASTERCARD was 23% they lowered it to 18.9%... The VISA was 25% its now 19.9%.

OMEGA3

Can anyone help?

With the updated info whats are our best options... If there are any FAs that feel they can help please PM and I will give you a ring.