Secured loan advice needed urgently

neil79121

we have been trying to remortgage to consolodate the debt we have built up while carrying out extensive renovation and extension work.

I recently became self employed which has made it difficult to get a lender to look at what we need based on one income despite me taking home monthly over £2k.

One lender has offered us a mortgage which covers a lot of the debt but we would be left with around £30k.

The mortgage itself will reduce our monthly outgoings by around £1200 and we feel that by taking a secured loan at this stage we could reduce our remaining debt by another £400.00 a month.

We have however been advised that we can not apply for a secured loan within six months of remortgaging is this correct?

As a previous mortgage adviser we were using had advised us that this would be the easiest way to cover it (taking a smaller mortgage and the rest on a secured loan).

He has also advised that because we now have the higher mortgage ( (£70 more a month than our previous mortgage- £1200 less than the outgoings we had from the debt we have just consolidated) we wouldn't meet the affordability requirements.

As none of the debt associated with the work to the house was intended as long term the rates are considerablly higher than what we could get in a secured loan. We still have over £50k equity in the property.

Can anyone confirm if this advice is correct??

ACG

I dont think the "6 month rule" applies in this instance. Even if it does, there are usually exceptions to every rule.

neil79121

When you say you don't think the 6 month rule apply sphere?
What is the six month rule?
Thanks again