Consolidating debt onto remortgage

Bruce11

Our mortgage is up for renewal soon. Since we last took out the existing mortgage we've increased the mortgage loan when we moved house, which has in turn needed a lot more emergency work than predicted, so we now have a whopping credit card debt across several cards that I'd like to totally clear and consolidate onto the mortgage. Combination of cheaper rate on the mortgage and consolidating will reduce our monthly outgoings by 400-600 per month, so way more affordable than our current situation. LTV will be between 60-65% if we add the credit card debt. I've received conflicting advice about whether lenders will allow us to do this though and if not, I'm concerned the credit card debt might impact on remortgage offers. Any advice appreciated.

Muscle750

Firstly when you say emergency work if it was that much of a emergency house insurance not cover it plus was the property have a full survey etc
Most lenders will not be interested in lending anymore when there is this unsecured debt because it's you that pays the cards off and you may well not and use it for other uses leaving yourself even more in debt. it may pay you to ask them for a home improvement loan but I wouldn't hold my breath althou the LTV might help but I doubt it you don't say how much unsecured debt you have the amount outstanding on the mortgage plus when did you buy the house and any missed payments etc.
Having just re read your post as you have already increased it once any lender will be jittery to say the least

kingstreet

It will very from lender to lender. At that LTV I'd expect your remortgage options to be good. Your existing lender may not like the idea of additional borrowing for debt consolidation. You need to ask them, before considering your other options.

TopCat1978

We have just gone through this process. I know a lot of people would argue it is not a good idea to put unsecured debt into secured debt as you then risk the property too.

We had a similar LTV as you and ended up with natwest. Out debt payments were about £900 per month :eek: and we remortgaged and our new mortgage is £850 per month which gives us some space to make overpayments at a lower rate that the CCs.

We went with natwest who gave us a fixed rate, although we did go through a mortgage broker as it was easier for them to explain everything. We got the cash into the bank (felt very rich for a day) and then I distributed and cleared all the CCs.

Sorry, quite long but just to say it is possible but I would go with a mortgage broker. We found HSBC (original mortgage) didn't loan on the debts we needed to clear and Santander took the current debts into the calculation for affordability.

Hope that helps, good luck!

Thrugelmir

How much debt are you looking to consolidate?

Bruce11

Thrugelmir we would be adding £25K to the mortgage