Cant Mortgage due to Credit Cards

Paveway

Hi all, Been advised to repost my quandary in this section from the guys in the 'Debt Free Wannabe' section; Sorry for any duplication.

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!)
Remaining Mortgage £129500
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

Thrugelmir

The amount of unsecured debt you have is a major issue. Your current options are dependent on what Santander are willing to offer you I suspect.

If you are only paying £290 into the cards every month then the debt is going no where fast. Hence the affordability comments.

GMS

What income(s) do you have?

Who have you tried for a mortgage? Have you spoken to a broker?

Have you looked at a debt consolidation loan for the cards?

Paveway

My Salary is 31k and my Girlfriend`s is 19k.
Spoken to a broker and both the Marsdaen and Natwest said the same. Thought about a loan, but unsure of the whole plan of attack with clearing the debt.

Thrugelmir

Can you afford to up your repayments on the cards by making some serious cutbacks for a period of time? I know xmas is around the corner, but it's up to you to break the cycle. There's no easy answers.

Secured loans are available, though at far higher rates than on a mortgage. Not the recommended route to go as there's no incentive to change ones ways. The loan will take years to pay off too.

Paveway

My initial thought was to get a loan, get rid of the cards, apply for mortgage in new year and transfer some of the debt onto the mortgage, or pay off some of the cards completely reduce the available credit and apply for new mortgage. The annoying part of it all is that new mortgage repayments save me over a 100 quid a month!

Foxy-Stoat_3

Are your balances reducing or are you using them every month?

I would get everything on the lowest rate and try and reduce the debts as much as possible....BC are doing interest free balance transfer for 24 months....cancel all the cards with a zero balance too.

No quick fix here.

Dave_Ham

Do you recall on what basis Natwest declined you?

m0bov

Get all your cards cleared, use some of your deposite savings for this. Then after 6months or a year, try again.

RobertoMoir

Paveway wrote: »

My initial thought was to get a loan

If they think you're over-extended now (and they'll be looking at the size of your debt, not just the monthly repayments) then taking out more debt is not going to convince them. Not to mention you may have trouble getting the loan, and any failed attempts to do so will, again, not do your credit record any favours.

I'd agree with the 'tighten belts, overpay' plan...