Remortgage & repay debts?

debts_reducing

I am after some advice please. My mortgage rate is due for review at the beginning of April. My property is worth £210k and mortgage will be £98k outstanding. My partner and I have other debts of £35k and due to the high interest rates on the other debts we are considering remortgaging to pay everything off.

We have no arrears of defaults on any of the outstanding debts (which are currently reducing) or mortgage and we have worked out we could reduce the term of the mortgage and still be about £500 per month better off.

We intend never using credit again and using the money saved to pay lump sums off the mortgage to reduce the term even further.

What is the likelihood of being accepted for a mortgage to cover everything based on these circumstances?

Thanks

MLSY

hi DR
Based on the loan to value lenders will consider the debt consolidation depending on your income and circumstances.
Is the debt in the forms of loans and cards ?
regards Ian

debts_reducing

Hi

Debts are loan and cards. We have joint income of approx £56k. If we went down this route our only outgoings would be mortgage and usual living expenses.

Thrugelmir

debts_reducing wrote: »

We intend never using credit again and using the money saved to pay lump sums off the mortgage to reduce the term even further.

What form is the debt in. Credit cards, car loans?

How much have you managed to reduce your debts from the peak?

MLSY

hi debts
if you speak to a mortgage broker they can see which lenders would be suitable and also the calculations to see if the repayment of the debts is beneficial in the long term
regards

Let_Us_See

debts_reducing wrote: »

We intend never using credit again and using the money saved to pay lump sums off the mortgage to reduce the term even further.

I wish I had a pound for every time a client has made the same statement!

However, with your joint income and consolidated borrowing at 63% LTV, you should be fine.