Shared owndership remortgage and debt consolidation

lw2576

Hi, I have a shared ownership property currently valued at around £225,000. I have a 50% share of which my mortage is £72000. It is coming up for renewal and I want to borrow around £11000 to clear all my existing debts and add it to my new mortgage but am being told that this is not available to shared ownership mortgages.
Does anyone know if there is a mortgage company out there that does support this? Any advise on this is much appreciated.

thank you

Mr_helpful

Its not an easy one and as far as i can remember every lender I tried said no but that was about 3 yrs ago so things might be a little different now.

lw2576

Thanks, it baffles me as to why they won't allow this especially if they profit from making more money out of you. Thanks anyway and will keep my hopes up for anyone who has the answer :-)

LondonSW5

Hi...
i am going through exactly the same situation as you. I have asked my current mortgage lender..halifax for additional borrowings...they said no..well not for as long as the shared ownership 'mortgage protection clause' wont support the borrowings. Have tried different lenders..same story. My problem is that i need the extra to pay off unsecured debts that i am struggling with. I took the unsecured loans to renovate my property and increased the equity by 100k...but they still wont help me!? Is really odd??
Good luck...post on here if you have any success..

Junglydaz

Slightly off topic, but I was advised on here not to consolidate existing debt onto your mortgage.

LondonSW5

i can understand the logic behind being advised not to consolidate debt into your mortgage in that it drags your debt out...but for some of us it is necessary otherwise we could easily fall into a situation where the outgoing expenses are SO high and a burden that we get caught out by anything unexpected that life throws at us.This could mean missing payments and end up in a worse situation. Is it not better to have lower monthly outgoings and let the equity that comes from market growth in your property pay off the debts?