Remortgage options?

AliceBanned

Hi


I wonder whether anyone can advise me on likely mortgage availability. I have a shared ownership flat, owning 40% (current value £72k, up 20% in past year), mortgage remaining £51500k - I only moved in 15 months ago and was a FTB.


However due to loans and credit cards and all my overheads, despite keeping up to date I am struggling to repay the credit cards, despite massively economising. The current 100% value of my flat is I believe £175-185k. As values are increasing quite fast for flats in the area, I can't see that I will ever be able to borrow sufficiently to purchase the rest of the flat. I don't want to be in shared ownership long term.


My salary is £30400 and I am only likely to get a 2% rise in April. My debts on credit cards are £9k, plus overdraft of £1000. I think I would be better off if I can find a cheaper flat and get a mortgage for the full amount. My current rate is 5.89% until July.


I'd be very grateful for any advice - I have looked into putting it on the market and I could feasibly do this in the next 2-3 months. Estate agents tell me the development is in demand and I can see that flats in the area are selling within days, as I've tried to view some but not got a look-in! I'm quite anxious about the future and do want to get out of debt. Consolidating some of the cc into the mortgage might be an option, but I think if I can get my overheads down by getting a flat which might allow me to get a lodger (which I can't do in my current one) then I can manage the debt and actually live again. It has been a year of too much scrimping and I don't want another 5 years to go by like this, I am sure by economising on a flat and sharing I can make things easier.


I believe that a better rate may available to me if non SO mortgage too, and a bigger loan. I was told 3 months ago by current lender that they won't lend me more than £20k more at the moment but would lend me £160k for a non SO purchase, possibly.


I just know that I need to compromise/economise for the sake of my long term future, and I think I could find something for around £140k if very lucky, in the area. Any advice would be much appreciated. I have no CCJs or defaults but a poor credit rating, probably due to me continuing to keep high cc balances.