Re mortgage with Charging Order???

Pablos171

Hi Guys,

I had a disagreement with Water board some years ago which ended with them getting a charging order on my property, although this has never gone any further I understand what this means basically that if and when I sell they will get their £2,500 out of proceeds.

I currently owe 25K on my existing mortgage and property now worth 225K and was thinking of re mortgaging the home for around 60K, this would clear all my debts, C/Cards and a car loan and of course the water bill mentioned. It would put me in a nice position having a good fully disposable income of around £1100 pm after all bills paid and about 15K - 20K back up for perhaps some special treats etc, as we are mid to late 50's and wished to do and see some places while we still able.

Question.
will a Bank or building society take me on with this charge on the proviso that the proposed re mortgage will clear this charge order first, I have no judgements or defaults and a credit score of Excellent 963 on experian.

Any advice appreciated.

kingstreet

It will have to be repaid either before, or with the proceeds of the remortgage, by the solicitor handling it in the latter case.

Pablos171

Thanks for that!

So is this situation likely to be accepted by a Bank or Building society based on the criteria given?

kingstreet

I can't see any particular problem with it, but some lenders might have an issue with a load of capital raising for debt consolidation.

Consider an offset product, so you have somewhere to stick that £20k while you aren't using it. Then you only pay interest on the net debit balance.