Consolidation Mortgage

Trump_2

I'm struggling to get a remortgage despite having equity and having never missed a payment. I'm told this is down to affordability (I have about £60,000 worth of loans and credit card debt, though again I've never missed a payment and actually pay considerably more than the minimum payments on the credit cards).

Essentially, if I was able to consolidate just one of the loans (which has a 14% interest rate), my monthly payments would be a lot less than they are at the moment.

Is there a mortgage lender who will apply common sense and allow me to do this?

Dave_Ham

Possibly.

What is your total income and how much are you trying to borrow?

Many lenders do not like high levels of unsecured debt, may well need a broker to appropriately place this case.

kingstreet

... and what will be the post-consolidation loan to value, based on a conservative estimate of the value of the property?

Use the recent (four months) sold prices of nearby (with 0.5 miles) similar property, to establish your valuation;-

http://www.rightmove.co.uk/house-prices.html/svr/3114;jsessionid=165100CD548E1126E20837FA30F5B5BE

Trump_2

My (joint) income is £63,000. Looking to borrow £210,000 (current balance is £190,000) and house value is approx. £250,000

ValHaller

Trump wrote: »

I'm told this is down to affordability (I have about £60,000 worth of loans and credit card debt, though again I've never missed a payment and actually pay considerably more than the minimum payments on the credit cards).

Trump wrote: »

My (joint) income is £63,000. Looking to borrow £210,000 (current balance is £190,000) and house value is approx. £250,000

You have unsecured debt equalling about 1 year's income. 6 months is reckoned to be where you become financially fragile.

Thrugelmir

Trump wrote: »

Is there a mortgage lender who will apply common sense and allow me to do this?

Lenders will assess the risk you pose as a borrower. With the total amount of debt you owe your net worth appears to be negative. So common sense (from a lenders perspective) would suggest that its up to you to address the issues. By allowing you to switch to cheaper rates of interest the likelihood of recovering the total debt diminishes.

Your previous payment history has little bearing. The future is where the problems could lie.

Suggest you post on the Debt Free Wannabe forum. Plenty of advice and support there. With many people tackling their own debt issues.

opinions4u

High LTV consolidation loans may be outside the lending criteria of many lenders.

Trump_2

Just to say, common sense did prevail and I managed to get a consolidation mortgage (via London & Country Mortgages - highly recommended!!).