Remortgage Advice

Summ14

We are thinking of remortgaging just checking that there's no reason why it should be rejected.

My partner and I are currently employed permanently and our total salaries are around £52,000.

I have credit card debts of around £7,500 over 4 cards, none are close to their limits and I pay the min payment or more every month and do not miss a payment. (but I wasn't sure whether to mention these as my partner not aware (long story) and the payments do not come out of our joint account). Not sure if this would make a difference in our re-mortgage application.

We have £70,000 equity and were just wanting to add £20,000 to our current mortgage to encompass home improvements (and a loan my partner has for house improvements) It would be over 20 years and would actually save us about £400 per month.

Could anyone advise on the chances of our remortgage being accepted without me declaring the Credit Cards or whether declaring the credit cards (but asking the lender not to share info with my partner - as it's my info) is the best option.

I have done the online MSE affordability check (without my loan payments) and it comes out at 58% with my loan payments it comes out at around 65%

Also would moving some CC debt to a 0% card I have (increasing the limit) and cancelling the card affect my case or trying to pay some off in full (with help of a family member) and cancelling some of the cards

Not sure what they look into when they carry out remortgages.

Sorry for all the questions, just trying to get things right in my head before we sort out our remortgage.

Many thanks for your advice.

Foxy-Stoat_3

You have no chance of a remortgage if you do not declare your current debt, you cannot ask the lender no to tell your partner about your debt either.

You will need to declare all your debts when you re-mortgage.

You will need to declare where the £20,000 is going, home repairs/improvements/debt consolidation. The lender will have criteria for lending for debt consolidation and improvements.

You don't mention your current LTV %.

nubbins

Hi,

We remortgaged to get some extra money for a BTL. Nationwide would only give us a maximum of 25% of THEIR valuation which was between 25 and 50k lower than mine and several local estate agents. So unless you have equity higher than 25% I think your options are going to be limited.
As for not declaring debt, you will be rejected at the MIP stage I would imagine.

Summ14

If we went through a broker and i declared it to him after our initial chat he would then have all the details to check the remortgage. Would this debt be noted on any paperwork we'd need to sign. Just I've managed easily so far to pay the monthly payments and with the remortgage were saving £400 (with me sorting repayments seperately) per month and if interest rates went up to 7% we'd still be saving £150. When we did our own affordability spreadsheet we had £12,000 per year money available. This is taking into account my reduced pay going into the bank with money for debt coming out seperately to a credit union account.

Sorry hope this makes sense


Just don't want to worry him if I can avoid it as its my debt fro a previous relationship and my responsibility.

amnblog

If you are applying alone the broker has no reason to tell your partner anything.


If you are applying jointly I do not see how a chunk of information can be 'hidden' from an applicant.


What is that they say about 'the best policy'.

Summ14

I know your right but i feel it's my debt my resonsibility :-( unsure if I borrow from a friend to clear it then get a loan after its gone through and pay my friend back would make a difference......

Thrugelmir

Summ14 wrote: »

Could anyone advise on the chances of our remortgage being accepted without me declaring the Credit Cards or whether declaring the credit cards (but asking the lender not to share info with my partner - as it's my info) is the best option.

From a lenders perspective.

(a) is fraud

(b) would raise serious concerns about the applicants credibility.

Personally I would suggest you come clean with your partner. Then address the situation together.