wanting to re-mortgage

allan1979

Hi guys,

Looking for some info,
Made few posts asking about re-mortgages but now i have all the details to hand,

We're looking to remortgage our house (value confirmed at £90000 - outstanding balance £56000) for £76000 (85% LTV). I have £29000 of CC/loan debt and on raising the £20000 would pay off the debt leaving £5000 on a rate for life card at 5.9% and a loan of £4000 to be repayed by june 2017. The money freed up by remortgaging would actually see the outstanding £9000 repayed by the end of 2015. My salary including overtime is £38000 and the average worked out over 3 payslips was £3200 per month. Ive had my experian credit report through and the result was 738 (i know this doesnt matter) and the report stated i had a fair rating (no missed payments but the fact my credit limits have been reached on a few of my cards seems to have brought me to this rating). It confirms im up to date and never missed a mortgage payment or any other but it seems to be the level of credit thats holding me back. Ive been to a whole of market broker but felt that he was pushing a certain product/lender that when we applied for that product we were declined for (its a bank we have a maxed credit card with, not on a promotional rate ) We were declined according to them its because we have too much credit outstanding. The broker seems keen for us to take a secured loan but that doesnt sit easy with me as i dont see thats going to free any money up compared to what we are paying at the moment. Should i be looking at a speciallist lender or does anyone have any experience of a situation like this? As i say if i re-mortgage i can save between £750- £1000 per month but i need the re-mortage to enable me to do this. I feel its a bit chicken and the egg, re-mortgage to free up money but cant get it because of the level of credit.

Any response is appreciated

THANKS

Thrugelmir

You'll struggle with any mainstream lender to consolidate that level of debt. Suggest you take a look at the Debt Free Wannabe forum. Loads of support and advice from people who've had their light bulb moment. Secured loan route maybe your best option. Though initially I would recommend going flat out to tackle the issue head on. Not easy. But the rewards are there.

Foxy-Stoat_3

If your take home average is over £3000 a month and with your current mortgage only £56,000 outstanding then you should be able to clear down some of the debt quickly. Start with the highest interest cards first.

You have a very high unsecured debt to income ratio so you will struggle to get good rates.

ACG

There is at least one high street lender who will consider it, possibly 2 or 3 (Im doing one at the minute for £50k unsecured).

Which bank declined you?

A secured loan may well end up being the only route available but if you are not happy with that and you do not particularly trust your broker try another.

allan1979

Hi,

The bank was Virgin and the reason given was level of debt outstanding. My take home is £3200 top line so you can take £800odd off that for tax and ni. Just looked at the re-mortgage as a quick route to pay off the cards as one of them is costing £250 per month minimum payment. As i said before i would have about £700 - £1000 per month to pay down the mortgage. Im probably in the same position as most people at the moment in that its the intrest killing me

thanks again for all replies

ACG

I dont think Virgin are big on debt consolidation. I think they prefer the very purchase/remortgage cases.

allan1979

Any hints on which high street lenders consider debt consolidation mortgages:D

ACG

Were not allowed. We dont know enough about you so the lenders I mention may decline you for something else.