remortgage for debt consolidation?

Mum2Boys_2

Hi all I'm hoping for some advice regarding my mortgage.
I am due to find a new deal and as I have a good loan to value ratio I was looking to borrow extra money.
I currently owe £76000 and my property is worth £150000 (20000 more then what I brought it for 3 years ago) I am looking to borrow at least £92000 in total.
I went to see a mortgage advisor who seemed to think this was possible however I have spoken to the mortgage advisor at Santander who says that rules have come in that do not allow additional borrowing for the sake of debt consolidation so this would not be possible.
I guess I was just wondering if this was true and is there any way around this.
My finances are literally pushed to the limit, I have even recently had to take my car off the road.
Many thanks for any advice given.

kingstreet

Mum2Boys wrote: »

I have spoken to the mortgage advisor at Santander who says that rules have come in that do not allow additional borrowing for the sake of debt consolidation

Absolute twaddle.

There may be lenders who don't want to do debt consolidation and others who may offer a lower maximum loan to value, but there appear to be people pronouncing from their fundamental orifices quite regularly at the moment.

Mum2Boys_2

Thank you very much for letting me know and as your a mortgage advisior with nothing to gain from me ill take you at your word! These past few months have been incredibly stressful financially and I'm so glad someone has said that!

Thrugelmir

Mum2Boys wrote: »

My finances are literally pushed to the limit, I have even recently had to take my car off the road.

This will be very apparent to any potential lender when you make the application.

Lenders aren't in the business of taking unneccessary risk when it comes to mortgage lending. There's no benefit to lenders in consolidating debt. Lenders prefer borrowers to find their own solutions. As this course of action is how people learn.

Mum2Boys_2

Yes I do appreciate that, we are hoping that because we pay all our bills and have never missed any payments on our bills that this will go in our favour including the fact that we have a large amount of equity. We are also young in age (30 and 26) So have plenty on time to clear the mortgage before we retire. Do you think these factors may go in our favour?

justick9

We've been told the same thing by Santander this morning.
Our property is value at approx. 265k, mortgage is 165k. we're looking to borrow around £50k extra which would keep us under 85% LTV, or we could go under £50k and keep to 80% LTV if necessary.
Santander (current lender) will not lend for debt con.
We have good incomes ( combined salary of £80k but around £1300 a month currently going on loan/credit card payments and we seem to be in an endless cycle never able to clear them off.
To us we feel like a good bet to lend to - good salaries, meet all our payments etc. To debt con our loan and CC debt would make a huge difference to our lifestyle. we can easily make the payments as we are already paying 4 x that in payments.
Is anyone offering a remortgage for debt con now or is it a lost cause?

amnblog

Everyone should ignore Santander and speak to a mortgage broker.

Thrugelmir

justick9 wrote: »

We have good incomes ( combined salary of £80k but around £1300 a month currently going on loan/credit card payments and we seem to be in an endless cycle never able to clear them off.
To us we feel like a good bet to lend to - good salaries, meet all our payments etc. To debt con our loan and CC debt would make a huge difference to our lifestyle. we can easily make the payments as we are already paying 4 x that in payments.

Lenders don't bet. Mortgage lending is a low risk, low margin business. Mortgages are to buy houses with not support life styles.

You are falling into the pit that many do. Lenders run mortgage books of 1,000's of loans. Boards set lending policies to exclude certain types of borrowers due the way they manage their personal finances. The concern for any lender is that with above average earning and record low interest rates. You've been living above your means. Any financial distress and you are a pay cheque away from a slippery downward slope.

Suggest you start with the Debt Free Wannabe forum. Getting your own house into order. Will be the forward in opening doors in the future.

kingstreet

justick9 wrote: »

We've been told the same thing by Santander this morning.
Our property is value at approx. 265k, mortgage is 165k. we're looking to borrow around £50k extra which would keep us under 85% LTV, or we could go under £50k and keep to 80% LTV if necessary.
Santander (current lender) will not lend for debt con.
We have good incomes ( combined salary of £80k but around £1300 a month currently going on loan/credit card payments and we seem to be in an endless cycle never able to clear them off.
To us we feel like a good bet to lend to - good salaries, meet all our payments etc. To debt con our loan and CC debt would make a huge difference to our lifestyle. we can easily make the payments as we are already paying 4 x that in payments.
Is anyone offering a remortgage for debt con now or is it a lost cause?

You're already a Santander borrower, so it's additional borrowing, not a remortgage. It is their choice to lend for debt consolidation, or not.

Once again, there has been no change in the law or any other regulatory change which prevents borrowing for debt consolidation. It is and has always been at the lender's discretion.

As suggested, speak to an independent broker recommended by friends or family who will find the right lender for your case at the best rate.