Mortgage Help

james_Roberts

Hi,

My Brother and wife are struggling to get a increased mortgage to move from a flat to a house.

Their combined income is £54,000, Debts of £39,000 between them, and have a deposit of £20,000.

They are looking to borrow a further £80,000 on top of the current mortgage of £50,000 on the flat. The house is £249,000.

They have been turned down by the Nationwide, any ideas of anywhere else where they can try.

Many thanks James

Sparx

They should really pay off their debt(s) first then start saving again for a house deposit..

They have nearly 75% of their income as debt!!

Thrugelmir

They need to start by using the deposit to reduce their debts.

ethank

That is a lot of debt relative to their income. Is it loans, hire purchase or credit cards? Lenders don't like to see so much debt.

james_Roberts

Hi,

They have a £50,000 mortgage with the Nationwide on the current flat they are living. The wife has been turned down as she has one or two CCJ's as was late once paying the mortgage.

As far as I know its loans, as they did have all the debt on credit cards and then turned that on to a loan.

ethank

I think they need to try and reduce the loan significantly, and also see a good broker.

kingstreet

They have a deposit of £20k, but want to borrow £130k on £249k. That's more like £120k deposit?

So they have a load of credit commitments and adverse credit as well?

If there any chance they could post here themselves, so we can establish the correct picture from the outset?

Either that, or suggest they obtain all three versions of their credit files and put them in front of a good whole market broker who can get to the bottom of the issues on the case...

ValHaller

james_Roberts wrote: »

Hi,

My Brother and wife are struggling to get a increased mortgage to move from a flat to a house.

Their combined income is £54,000, Debts of £39,000 between them, and have a deposit of £20,000.

Amazing what you can do with unsecured lending. You can actually buy a good enough illusion of having savings to fool yourself.

ViolaLass

kingstreet wrote: »

They have a deposit of £20k, but want to borrow £130k on £249k. That's more like £120k deposit?

I agree, something doesn't add up.

ValHaller

ViolaLass wrote: »

I agree, something doesn't add up.

Equity in the flat.

kingstreet

Probably.

If there's a £100k equity, which I hoped the OP would return and confirm, we could then ask why they don't use the £20k (or even £40k) to reduce/repay their credit commitments.

TBH with the adverse, we're going to ask a load of questions and recommend a broker, so I thought I'd cut to the chase...