Decision in principle too low

Lellylion10

Hi
I am looking to re-mortgage to clear off 7k other debt, so I can reduce our monthly outgoings.

Currently that 7k costs us £275 a month in minimum payments, and checking online for a mortgage to cover the existing plus this extra 7k would put our monthly mortgage up by £30....leaving us the extra £245 that we can snowball onto 2 other credit cards.

If we got the mortgage agreed we could be debt free in just over 3 years...

But I have applied for DIP online and its come back at much less than we need.

Anyone know what the chances are of them agreeing to the full amount, if I go into the branch and show them our monthly figures, budget and and why it makes sense for us to re-mortgage .... or do they just go with what the system tells them to do...end of...

Just to add....yes we do have debts, and yes I realise that's not good, but we have never missed a payment on any mortgage payments over the past 15 years of having a mortgage, we have never defaulted on any debts...its just that the debts we have, we can only afford the minimum payments and I want to free up just a little so we can pay more than the minimum on the 2 remaining cards and hopefully see an end to this debt once and for all....

Thanks for any advice you can offer

lucie_1985

I'm sure you've looked into all of this already but is trading unsecured debt for secured debt a good idea?


Have you investigated some of the 0% credit cards out there to make balance transfers? Given the figures it looks like you're paying interest on the cards at quite a rate so no wonder you're not getting a chance to whittle it down.

betmunch

If you have applied online you must have done this yourself, is that right?

Get a professional on the job. Once they have done a full fact find they will be able to tell you if its possible

Lellylion10

betmunch wrote: »

If you have applied online you must have done this yourself, is that right?

Get a professional on the job. Once they have done a full fact find they will be able to tell you if its possible

Yes, I did it online. I have made an appointment to go into the branch armed with all my figures, statements evidence etc....just wondered if they would stick to the original DIP or was there wiggle room once they took into account our overall situation.

Thanks for your comments, I will see what the adviser in branch comes up with.

Lellylion10

lucie_1985 wrote: »

I'm sure you've looked into all of this already but is trading unsecured debt for secured debt a good idea?


Have you investigated some of the 0% credit cards out there to make balance transfers? Given the figures it looks like you're paying interest on the cards at quite a rate so no wonder you're not getting a chance to whittle it down.

I agree increasing secured debt isn't ideal, but the 0% cards won't give us a credit limit high enough to cover the whole amount...the best I have been offered is less than 2k, which wouldn't cover either of them.

This way, I increase the mortgage by just £30 a month...no extra term increase. And that gives us the extra £240 to snowball and clear the rest quicker.
£125 of the current figure is a loan and fixed monthly payment...and the other £150 is minimum payment on 2 cards at 18.9%

Thanks for your comments

Contracts_Engineer

I'd try an all market broker, more options than a high street bank

betmunch

Lellylion10 wrote: »

Yes, I did it online. I have made an appointment to go into the branch armed with all my figures, statements evidence etc....just wondered if they would stick to the original DIP or was there wiggle room once they took into account our overall situation.

Thanks for your comments, I will see what the adviser in branch comes up with.

Would be interesting to see if they can improve on the figure in branch, although I think its unlikely.

even if they dont give you what you want it would be a good idea to compare the wider market.

please keep us updated

PixelPound

As you've had the mortgage 15 years, then I assume LTV isn't a problem? Unfortunately MMR means they have to check whether you can afford it, irrespective to the realities of it saving money in your case. Did you ensure they weren't taking your £275 into consideration as continued payments, since that would be gone - just wondering if the online form assumes it is to continue.

It sounds like you are wanting to use your existing mortgage provider, since you are going in branch to the same company you tried online with. Any reason for this limitation?

lovinituk

Lellylion10 wrote: »

If we got the mortgage agreed we could be debt free in just over 3 years...

No you won't. You will have just transferred the debt to the mortgage that will last as long as the remaining term of the mortgage. All you're really doing is delaying paying it back and it will cost you far more over the longer term. Out of sight, out of mind I guess!

Lellylion10

lovinituk wrote: »

No you won't. You will have just transferred the debt to the mortgage that will last as long as the remaining term of the mortgage. All you're really doing is delaying paying it back and it will cost you far more over the longer term. Out of sight, out of mind I guess!

Sorry..not quite what I meant... Yes of course the mortgage will be a debt, but all the other debts will be gone.

Thanks for your comments

Lellylion10

nic_c wrote: »

As you've had the mortgage 15 years, then I assume LTV isn't a problem? Unfortunately MMR means they have to check whether you can afford it, irrespective to the realities of it saving money in your case. Did you ensure they weren't taking your £275 into consideration as continued payments, since that would be gone - just wondering if the online form assumes it is to continue.

It sounds like you are wanting to use your existing mortgage provider, since you are going in branch to the same company you tried online with. Any reason for this limitation?

Going to branch of my bank account, not my current mortgage provider...

We have had a mortgage for 15 years, but this particular mortgage still has 19 years left on it... The LTV that we are asking for a 66%