Re-mortgage to clear debt

sharon5cc

We have £40000 worth of debt on credit cards and a 75000 mortgage. Has anyone had dealings with companies that would do this? Husband earns 40000 and I earn 18000. Please don't judge our debt. Our mortgage company will not let us consolidate debt (nationwide). Is it worth speaking to a broker?

wannabeprudent

Yes I did and used broker who got this through the NatWest

kingstreet

sharon5cc wrote: »

We have £40000 worth of debt on credit cards and a 75000 mortgage. Has anyone had dealings with companies that would do this? Husband earns 40000 and I earn 18000. Please don't judge our debt. Our mortgage company will not let us consolidate debt (nationwide). Is it worth speaking to a broker?

If the property is worth £115,000 - no.

If the property is worth £150,000 or more - probably.

Broker - definitely.

amnblog

There are a number of ways to do this Sharon.

Including options leaving your current Nationwide mortgage as is.

Consult a mortgage broker.

wannabeprudent

kingstreet wrote: »

If the property is worth £115,000 - no.

If the property is worth £150,000 or more - probably.

Broker - definitely.

My broker got it through at 85% but he was great and had quite a few chats with his NatWest Business Development Manager to gauge the possible view of an underwriter. Definately worth giving your broker time to do their bit. It took me three months from engaging my broker to getting a DIP at first attempt then the rest of process to completion was very fast.

Prep work is the key.

Good luck

Dandytf

wannabeprudent wrote: »

My broker got it through at 85% but he was great and had quite a few chats with his NatWest Business Development Manager to gauge the possible view of an underwriter. Definately worth giving your broker time to do their bit. It took me three months from engaging my broker to getting a DIP at first attempt then the rest of process to completion was very fast.

Prep work is the key.

Good luck

I am currently on a dmp via step change-unsecured lending

mtg balance 49K flat value 67K

I recently called SC who advised my ltv would need to be 75%

Is there any lender who will consider me for consolidation?

Thanks

S

Westminster

I am currently on a dmp via step change-unsecured lending

mtg balance 49K flat value 67K

I recently called SC who advised my ltv would need to be 75%

Is there any lender who will consider me for consolidation?

Thanks

S

Doesn't make much (if any) sense to me to take unsecured debt which is currently part of a DMP (possibly at a low to 0% interest) and to then bundle it all into a secured debt (definitely high/higher interest) with the very real threat that your house will be removed from you if (and it is a VERY well trodden path before you) you slip back into your (possibly?) overspending habits of the past.

This is not said in a judgemental way (I have also been on a DMP) - but what is it you are actually looking to achieve from this course of action?

sharon5cc

Thankyou all For you replies. How do I go about choosing a broker?

Dandytf

Westminster wrote: »

Doesn't make much (if any) sense to me to take unsecured debt which is currently part of a DMP (possibly at a low to 0% interest) and to then bundle it all into a secured debt (definitely high/higher interest) with the very real threat that your house will be removed from you if (and it is a VERY well trodden path before you) you slip back into your (possibly?) overspending habits of the past.

This is not said in a judgemental way (I have also been on a DMP) — but what is it you are actually looking to achieve from this course of action?

I suppose for the past 2 yrs with 4 yrs remaining dmp..I've never really felt the 'threat' of losing my home will ever pass.

Thought with the 'available' equity it would make sense to 'move it over' and pay off DMP.

Westminster

I suppose for the past 2 yrs with 4 yrs remaining dmp..I've never really felt the 'threat' of losing my home will ever pass.

Thought with the 'available' equity it would make sense to 'move it over' and pay off DMP.

I think you should take professional advice on this from one of the free charities such as National Debt Line.

The downsides to your plan are:
1 - You will pay more in interest and fees setting up the new loan.
2 - If - for example - you were to lose your income tomorrow, pretty much the worse outcome from a DMP would be that you could end up in County Court - where you would present your income and expenditure and the court would rule that you would have to repay what you could afford.
3 - If you pay off your DMP and take out secured lending, then in the exact same situation, the worst scenario is you are made homeless.

The upsides are:
None.

I know which I would prefer.

Thrugelmir

sharon5cc wrote: »

Our mortgage company will not let us consolidate debt (nationwide).

Converting unsecured to secured debt is not recommended. Though the lower interest rates are obviously an attraction. Lenders likewise have their responsibilities to consider when making lending decisions. With debts of that level there are obvious concerns. Seek advice as has already been suggested.