Additional borrowing

Kevlim

We recently had our home valued and looks like we may have quite a bit of equity (64% LTV now.)
Contacted Mortgage company to arrange borrowing for home improvement and was informed credit score came back as a no. Little annoyed as the new borrowing and deal meant we would pay less than we currently do.
My wife has recently gone back to work after a years maternity and so I had built up a bit of debt on credit cards in the interim so knew I'd gained a bit of debt. I Joined Experian free trial to try to better understand our credit score. My wifes came back perfect where as mine was good (901 pts but I know not to completely trust these scores.) Anyway the 3 main points were:
1. I had missed a payment (didn't realise DD wasn't set up straight away so missed first credit card payment of £10!)
2. My credit Cards were close to their limit (One card was at the limit and the other was way below)
3. No significant reduction in debt recently


I know I cant change the missed payment so that's now there. I have managed to clear £5k of one credit card (11k limit) and reduce another credit card to £6.5k (6.75 limit.) So that should show a reduction in overall debt recently. Not sure what to do now though. Would it be best to completely leave my now empty card alone so I have nothing on it at all or better to transfer some money from other card (£6.5k) on 0% balance transfer to now empty card so I have little on both cards but way below the credit limit on my second card? My thoughts at present are that of the 3 negative points I would have removed 2 and left with the one that I cant affect.


Hope that makes sense?

amnblog

What is best to do now is to get some sensible advice.


Just because your current Lender says no, that is not the full story.


Other lenders are available who may be more generous.

shortchanged_2

Are you looking for more funds for home improvements or debt consolidation?

Thrugelmir

Kevlim wrote: »

Contacted Mortgage company to arrange borrowing for home improvement and was informed credit score came back as a no. Little annoyed as the new borrowing and deal meant we would pay less than we currently do.

Lesson 1 - don't treat lenders as being stupid and not seeing what your attempting to achieve. You are far from the first and not the last to think that they've reinvented the wheel.

Be honest at the outset. They'll be someone willing to offer you a secured loan in the market though not necessarily at the cheapest interest rate.

Though converting unsecured debt into secure debt isn't advisable. As it may put your home at risk. So a few months of self inflicted austerity could be a better way of tackling the debt you still have.