Can I remortgage with large debts already and gambling transactions too?!

Adviceneeded15

Me again. Ive just been collared by the bank whilst depositing a cheque. Silly me agreed to do an account review whilst I was in there...

They have offered me the option to take out a loan to pay off the credit cards I have maxed out on as they won't be able to help with a remortgage at this time due to the way I've run my account recently.

My question is if we do decide to remortgage in the future would lenders look more favourably at an application with 3 large loans or 2 large loans and maxed out cards? I am trying to work out what to do for the best. I am conscious that we are on a variable rate and ideally I want to fix this sooner rather than later. I am paying only a little over the minimum payment on each credit card but it's not making any difference. The card payments are nearly 500 a month which is more than our current mortgage and isn't bringing the debt down. With the loan at least the debt would come down. I had planned to have three months of no gambling transactions on my account then try to remortgage and pay extra into the remortgage. When I've looked at mortgage calculators for our current mortgage and the cc debt it shows monthly payments of what we currently pay just for the mortgage but obviously I have to meet the lenders affordability criteria which is why I'm wondering which debt if any will give us the best chance.

I'm wondering if in a few months time whether we'd be able to remortgage with these big loans or whether we just sit tight and try with the cc debt in place.

Also would it 'look better' if the debt was on the loans and not the cards as there would be no further possible debt to rack up.

I also wondered if remortgaging without adding any of the debt is possible too as the new loan would be flexible in that I could make over payments to bring it down which we would do and to save adding the debt to the house.

Ideally I want to fix the mortgage before rates go up and to pay the debt off at an affordable rate with the option to overpay when I can.

Sorry for the ramble just trying to work out what our best plan of action is to fix my mess.

libf

Is the interest rate on the loan being offered better than the interest rate on the credit cards?

IMHO you're best off forgetting about doing anything with the mortgage until all the other debts are under control.

Paully232000

Have you contacted any of the advice organisations mentioned above?
Have you gambled again since your first post?

I think, by the sound of it, that is at least, if not more important than a remortgage.

Adviceneeded15

No more gambling. I haven't contacted any of the organisations. I had hoped telling my husband and giving him the account would help. The shame of admitting what I've done was awful. I want to move on but struggling and don't want to sign up to a payment agreement as assume that will spoil any credit in the future.

Thrugelmir

Adviceneeded15 wrote: »

They have offered me the option to take out a loan to pay off the credit cards I have maxed out on as they won't be able to help with a remortgage at this time due to the way I've run my account recently.

There's a starting point. Tackle one issue at a time. Remortgaging can wait. Time will rebuild your credit history. The sooner you start the better.

Jon_B_2

Your post doesn't give me the greatest confidence you aren't going to gamble again. I seriously think you need to consider this your number priority over and above everything else.

Paully232000

Adviceneeded15 wrote: »

No more gambling. Excellent to hear I haven't contacted any of the organisations. Why have you not done it? I had hoped telling my husband and giving him the account would help. The shame of admitting what I've done was awful. I want to move on but struggling and don't want to sign up to a payment agreement as assume that will spoil any credit in the future. I would agree with others that there are more important things in life than your credit file, and it will improve with time

......................................

densol_2

If you take out the loan - you must destroy the credit cards and close the accounts and allow your husband to give you a cash " allowance " a week. Otherwise they will creep back up again and you will be in an even worse position. Good luck

Adviceneeded15

Although I haven't contacted any of the agencies I have been reading through gambling forums and I think I need to address the reason I was gambling - relief from stress of working full time and being a parent carer for my soon to be adult autistic son. I had been using online gaming to lose myself. Sounds ridiculous doesnt it. I need to find something else to relax. I have a referral to mental health services so will go from there. Fixing the mortgage was my priority in case I can't continue to meet the minimum payments on the cards then get stuck with an increasing mortgage. I'm stressed enough with what the future will bring for my son. I'm a worrier

I tried the loan application this morning and it declined so seems I'm back to trying to get the cards down and keep my payments up til I can hopefully fix the mortgage. I just hope the interest rate increases slowly.

Thanks everyone for your posts.

libf

If it makes you feel any better, it's likely that an BoE increase in interest rates will be slow and steady.

http://www.thisismoney.co.uk/money/news/article-1607881/When-UK-rates-rise.html

Rather than a loan, can you balance transfer to a card with a better rate?

http://www.which.co.uk/money/credit-cards-and-loans/guides/credit-card-balance-transfers-calculator/