Additional borrowing declined by C&G

Tibbie's_mum

My partner and I asked C&G for a further £75000 to add to our mortgage of £71500 over a 14 year period which is the term left to run on the original borrowing. The extra cash is for house renovations and an extension. We purchased the house nearly 4 years ago for £380000. We had two estate agents around to give us their opinions on how much it would be worth with an extension and were quoted £475000. C&G have declined our request for any additional funds saying our credit rating is fine it's due to affordability even though our household income is £50000. Our original mortgage is on a lifetime tracker that is a very small interest rate, it seems they are trying to either get us to remortgage with a higher interest rate product or to leave C&G altogether, could this be seen as constructively trying to get more money out of us if they accept us for a remortgage?

Many thanks for any forthcoming comments.

david39

You said that they have declined your request for any further funds which suggests that they are not willing to extend their commitment to you at all.

Are you suggesting that you should be able to force them to lend you the extra?

Maybe their decision is based on the fear of a charge of irresponsible lending. Without a breakdown of your other outgoings and liabilities, only they can judge. They know more of your circumstances than we do.

Tibbie's_mum

Outgoings are £1800 a month leaving surplus of £1000.

opinions4u

Did they say how much they would lend you?

What's your income comprised of?

Tibbie's_mum

We not allowed anything. £50k is my partner's salary and I'm a stay at home mum.

ViolaLass

How much do you have on CCs?

Thrugelmir

Number of dependents will impact affordability calculations.

C&G will assume you intend to consolidate debt in the process. Which will impact their decision.

kingstreet

Look at the lender's online affordability calculator. Enter all your details and the correct term of the mortgage.

Does the calculator indicate the lender would normally lend that much?

As an example, I used the Halifax calculator. For a two person application with one dependent child, one income of £50k and a 14 year term, the maximum lending is £175,770.

Add in another child, a loan for a car (£200) and a couple of grand credit card debt and suddenly it's down to £133,175.

amnblog

C&G don't have to lend extra to you.

If you want to keep your low rate lifetime tracker with them, seek out your options for a second charge loan (secured loan) with another lender.

Tibbie's_mum

C&G's online affordability checker says with 3 dependants and OHs cc payments we should still be able to get a further £95500. It's a joint application but I don't work, as I stay at home to look after our disabled son. Would that have a greater impact as we informed them I get carer's allowance?

Brock_and_Roll

C&G are probably losing money on this mortgage at the moment so as a commercial organisation is is hardly surpising that they are not jumping up and down with excitement