Re-Mortgage Refused - Any advice greatfully received

chevvy26

My husband and I have a property worth £395K with a mortgage outstanding of £219K. We would like to re-mortgage to consolidate our debts of approximately £80K into our mortgage. Unfortunately due to illness and my husband having to care for me we have racked up debts on credit cards etc. We went to our bank and mortgage provider who when they did the figures said that we would be £1300 better off per month but the computer said no as our earnings x their criteria did not add up. We are both now back in full time work.


We explained that we will be looking to sell our house in two years time once our daughter has been allocated her secondary school place. In order to do this we need to be within the catchment area as once she has her space our father would like us to move in with him. He is a little bit too far out for her to go to the same school as her older brother and the sibling rule does not apply as they have too large an age gap.


I just wondered if anybody else had been refused even though it would save them money and ease their financial burden. Did anybody have any pointers on which lenders are a little bit more liberal with their criteria. I recognise that we are in a position which is a lot better than most and if push comes to shove we will just sell now and clear everything.


Any helpful hints or advice would be much appreciated.

Funny_old_game

You may struggle with that debt and your last paragraph sort if point you the right way.

Heavy debt and remortgaging will need broker support only to gauge who will look at this sympathetically.

Thrugelmir

chevvy26 wrote: »

I just wondered if anybody else had been refused even though it would save them money and ease their financial burden. Did anybody have any pointers on which lenders are a little bit more liberal with their criteria. I recognise that we are in a position which is a lot better than most and if push comes to shove we will just sell now and clear everything.


Any helpful hints or advice would be much appreciated.

You need to start addressing your own problems head on. Debt consolidation provides an answer not a solution to the underlying problems or causes. Hence lenders reluctance to increase their risk exposure.

While your destiny is still in your hands. Settling your debts and starting afresh so to speak, is your best option. Will also remove stress and worry from your lives as well.

Butti

I would reinforce the last point. If you go on the debt free wannabee forum it is chocka with people who are regreting consolidating debts on to their mortgage rather than doing an SOA, having a budget and learning their lesson. Cut your costs and get to grips with your debts don't consolidate.

amnblog

Securing unsecured debt on your home needs to be thought through carefully.

You should be aware however a second charge loan on the property can sometimes be offered where a full re-mortgage cannot.

If you do consider a second charge or secured loan - consider ALL the potential implications for you and your family carefully.