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Remortgage to consolidate debt
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ohdear66
Posts: 39 Forumite
Good afternoon!
After some friendly advice please! Our house was purchased for £216,500 in Sept 2007 with mortgage of £183,500. We built an extension on the rear and just done a loft conversion. House value has gone up to £370,000 and current mortgage is £155,000 with BM. We spent around £35k on credit cards and a small loan to do the work on the house and would like to consolidate it onto our mortgage.
My question is....when we apply to remortgage with a new lender (will still be <60%ltv) we have to tell our financial commitments but at the point of new mortgage starting we will not have any of those debts so will they disregard it? How does it work?
Thanks in advance!
After some friendly advice please! Our house was purchased for £216,500 in Sept 2007 with mortgage of £183,500. We built an extension on the rear and just done a loft conversion. House value has gone up to £370,000 and current mortgage is £155,000 with BM. We spent around £35k on credit cards and a small loan to do the work on the house and would like to consolidate it onto our mortgage.
My question is....when we apply to remortgage with a new lender (will still be <60%ltv) we have to tell our financial commitments but at the point of new mortgage starting we will not have any of those debts so will they disregard it? How does it work?
Thanks in advance!
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Comments
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You answer the question "To be repaid on or before completion?" - "YES" and the commitments are ignored for affordability purposes in most cases.
There are be one or two lenders to avoid as they will not ignore them and will automatically assume you will re-draw the debt again in future.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Hi Kingstreet, thanks for your prompt reply! Ok we have an appointment with Barclays tomorrow, do you know if they are one to avoid?0
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Barclays isn't.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Thank you : )0
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Is Virgin one to avoid?0
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