Remortgage to pay off Debts ?

Beakie181004

I may be in cloud cuckoo land but what are the chances of this ?


House bought in Feb 2012 for £332K. Mortgage at moment left to pay is £236K. However reckon current house price is approx. £360K what with natural price rises.


We have joint income of £54K, however debt (CC, Loans, OD) of nearly £48K. Debt is going down each month by approx. £300 to £400 pm, but cash flow is the problem


2 year fix is finishing in Jan/Feb of next year.


Questions :
1) Will I be able to able to ask for new increased mortgage amount of say £260K, using that extra £25K to decrease debts ?
2) Would I have to go up against the new MMR test even with my current mortgage bank


Thank you


B

Dave_Ham

Hi,

1/ Potentially, but small pool of lenders given debt levels and affordability

2/ Yes, absolutely

kingstreet

If you want to increase your borrowing, an affordability check will be made by all lenders.

Debt consolidation may be possible, but some lenders won't be keen on the amount you want to consolidate and the final loan to value. The maximum may be limited to 75% or 80%.