Refused further advance Help!

Katiel15

I had a long meeting with my BS today - the Nationwide. We have in a right mess with credit cards and want add to the mortgage to get ourselves straight. The mortgage is £86K, the house is worth £400K. The Nationwide refused the extra due to the amount we owe on our cards - £35K. Doing this would have brought an £1100 outlay a month down to £250. The mortgage adviser did say that the Nationwide have very strict criteria for extra borrowing and it was refused on the grounds that they had no proof that I would actually do what I said and could just be getting further into debt. I was totally gobsmacked. I sat there for over an hour. I took in everything, I showed her the economies that we have made so far and the fact that I have a second job.
What do I do next? Where do I find somebody to lend the further advance. Nationwide did say that some lenders do not have such strict criteria but where do I go to find them?
I know its our stupid fault that we are in this situation. Please don't lecture me, I have lectured myself enough. I really thought this morning I was seeing the light at the end of the tunnel.

GMS

Broker may be useful here.

MAny lenders will not do debt consolidation at that level.

What rate are you on with Nationwide? Any costs to move away from them?

kingstreet

FWIW I had a case recently with a very high income, wanting under 70% for a small amount of debt consolidation and Nationwide turned it down on the amount of credit they had.

Katiel15

On SVR with Nationwide, 2.49% no costs to move. Mortgage been running for 11 years. Nationwide customer since 1988.

Katiel15

Should also say - we don't have a bad payment history. We meet our repayments every month, its just a struggle.

Katiel15

GMS wrote: »

Broker may be useful here.

MAny lenders will not do debt consolidation at that level.

Not sure what you mean by this - the level of our debt or the level of our mortgage?

nidO

I think he means both the level of debt and the level of monthly outgoing.
Your LTV, both before and after the additional amount you want is more than fine, but the issue is you know you're taking your 1100/month debt outgoings down to 250 but nationwide don't, they have to assume that your total will go UP to 1350 a month, and you probably fail affordability on that.
As suggested, seeing a broker may help find a provider who'll do this for you.

GMS

Katiel15 wrote: »

GMS wrote: »

Broker may be useful here.

MAny lenders will not do debt consolidation at that level.

Not sure what you mean by this - the level of our debt or the level of our mortgage?

Level of unsecured debt.

Speak to a broker. Don't apply at random to other lenders as this will impact on your credit score

ACG

Im with GMS, speak to a broker there will be lenders who will do this but £35k of unsecured debt is quite high. Lenders are worried you would consolidate the debt then run it back up again. People have and do do that so theyre just protecting themselves really.

Thrugelmir

Katiel15 wrote: »

Should also say - we don't have a bad payment history. We meet our repayments every month, its just a struggle.

Mortgage lenders have no need to take any risk. In fact totally the reverse. Lenders on the whole view debt consolidation as giving a borrower an easy way out. As statistical evidence supports the fact that people are likely to reoffend or end up in financial difficulties at a later date anyway. That's down to human nature and peoples genes. Whereas tackling the problem head on is a sure way of people learning a lesson.

Get over to the Debt Free Wannabe board. Loads of support and advice there. People make do with very little and are extremely resourceful when times get tough.