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Remortgage & Second Charge Loan
rivertom
Posts: 14 Forumite
Hello
I wondered if someone can give me some general advice.
I currently own a property (33%) with my parents who own the remainder. We have a mortgage of £153k and the house is valued at £210k. We are looking to clear debts of £22k on my head (I am 31) and wondered whether it’s worth looking at a remortgage and/or a second charge loan against the property?
I wouldn’t say my credit rating is A1, but I know I’ve never missed a payment or gone over any limit.
Does anyone have any experience of this? (And are aware of the chances of us getting what we wanted).
Many Thanks in advance.
I wondered if someone can give me some general advice.
I currently own a property (33%) with my parents who own the remainder. We have a mortgage of £153k and the house is valued at £210k. We are looking to clear debts of £22k on my head (I am 31) and wondered whether it’s worth looking at a remortgage and/or a second charge loan against the property?
I wouldn’t say my credit rating is A1, but I know I’ve never missed a payment or gone over any limit.
Does anyone have any experience of this? (And are aware of the chances of us getting what we wanted).
Many Thanks in advance.
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Comments
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Will they be happy to become responsible for your debt?
At 83% LTV there will be some lenders who will not want to do a debt consolidation remortgage.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Yes, they're happy to - my part of the mortgage payment would increase and any fees incurred would be paid by myself. I thought some lenders wouldn't look at this, which is why a second charge loan/mortgage was suggested to us?
Many thanks for your comments.0 -
A secured loan would be an option, an expensive one, but an option.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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I suppose the secured loan could be only in my name?0
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No. Any secured finance has to be in the names of all the owners, otherwise the lender would not be able to exercise its charge to repossess in the event of default.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Thank you, do you need to go to your mortgage lender on 2nd charge loans?0
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Not necessarily.
A lender may offer an existing borrower a further advance to increase the existing mortgage within the first charge, but would have to be happy with the purpose of the additional borrowing.
Otherwise, second charge lending is from alternative-type lenders, of which there are many "funnel" operators who offer the products of different lenders.
As many whole market mortgage brokers can talk to you about the chances of, pros and cons of remortgage, further advance, or secured loan, why not ask friends and relatives for a recommendation?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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