Cant Mortgage due to Credit Cards

Paveway

Hi all, been a while since posting on here so ill try and be as brief and concise as I can be.

My girlfriend and I are trying to obtain a new mortgage however due to the economic crash of recent years my our home has significantly reduced in value, and as such has a greater LTV.

We both are from previous marriages and have obtained debts too.

We have been told that due to the LTV and a combination of CC debt and the availability of more debt being acquired we can not have a mortgage on the grounds of affordability and lending policy.

Our combined debt is around £16300
My cards: BC - £4000 (limit of £10500), Cap One £1800 (limit £2000) & Nationwide ((Balance transfer) £5700 Limit £8500))
My Girlfriends card: Halifax balance of £4800 & £5000 limit

House Value of £160000 (originally £185000!)

Monthly out is £290 for cards.
Mortgage is £750

Looking for a solution. Initially thought of long loan term and once new mortgage, due to the stupid rate set by Santander, transfer the debt, in part or whole.

Hope someone can help.
Many thanks
Best wishes

~Beanie~

You haven't said how much is outstanding on your mortgage.

gfplux

Do I understand you want a new mortgage as you are being charged a very high percentage by Santander. Is this affixed rate or variable?
If that is the case I suspect that even if you could remortgage most lenders will want a high interest rate due to your credit problems and the high LTV

sistafromanothermista

Or what you both earn.
More info needed i'm afraid....

Paveway

oops,

The outstanding mortgage is 129,500 and is a variable.

Despite my current debt, Experian's credit expert service rate me as high as it goes!

My salary is 31,000 whilst my girlfriends is just over 19,000

Ta

dancingfairy

Not too sure. You could try paying the debts off as fast as you can and trying again in 6 months or so?
I know that won't help with the mortgage but you appear to need to a) get the unsecured debt down b) earn more and c) have the value of the property go up. Clearly c you have no control over and b is not quite so easy so a is your best bet.
df

JulieGeorgiana

I don't think having a lot of 'available credit' helps you.

I've been told (rightly or wrongly) that they don't consider your 'actual' debts but your 'potential' debts. So you could have £21k debt overnight if you wanted. I was also told apx £20k is the upper limit of acceptable even with a great credit score.

I always lowered by credit limits when I was going debt free. Now I have no debts and only £4k 'potential debts' while DH has £6k 'potential debts'

I may be wrong, but it may help.

dancingfairy

You could try the mortgage section of these boards? People might have an idea what size mortgage and an idea of what sort of rate you might get based on your figures.
df

loveka

Hi. I am assuming you are on a fix with Santander which is coming to an end? And tbey have said you have to go on the SVR?

You could try switching your bank account to a Santander 123. For me this had a miraculous effect. After 6 months of being told we had to go on the SVR we were offered a 3% 5 year fix. Its worth a try. The account is really good too.

~Beanie~

Who has told you that you can't get another mortgage, Santander? Have you tried anywhere else or spoken to a broker?

Have you checked your credit files?

Paveway

Thanks for the replies guys.

Currently been on the Santander SVR and have been for around 2 years as found it impossible to move to a better rate due to LTV on the property. Now that house prices are rising and mortgage is coming off, slowly want to change more than ever but being prevented.

Just need a plan of action. Don't intend to not pay my debts.