ReMortgage to Consolidate Debts - Natwest

SpecialMcSpesh

Hello,

I am hoping to remortgage to consolidate debts.

I have spoken to Natwest who said they could help me after going through my income (£40,000) and my debt to be consolidated (c£21,000) and that I have car finance (£21,000 remaining), not to be re-paid through consolidation,

Due to not being able to arrange an appointment at a suitable time I then spoke to an independent advisor. We put in an application to Post Office who declined due to debt to income ratio, and now we are looking at Natwest. Natwest have agreed in principle and are 60/40 in my favour....

I am really worried that I am not going to be able to re-mortgage even though by doing so I will have around an extra £700 a month spare as my expensive debts will be gone. It will literally change my life.

Can anyone offer any advice/reassurance as to whether I have any hope in getting this sorted.

Current mortgage outstanding = £101,000

Value of property = £169,000

Thanks.

Caz3121

how have you been dealing with the debts to date? have you spoken to any of the debt charities?
Changing unsecured debt into secured is rarely a good idea and it does not address the cause of living beyond means, just means you end up paying potentially £1,000s more in interest and there is nothing to stop you running up the cards / loans again

mrginge

21k on car finance?

Stupid question perhaps, but why not sell the current car and buy a micra?

SpecialMcSpesh

The debt is down to me being impatient and irresponsible and re-doing kitchen and bathroom by just sticking it all on credit cards.

Definitely will not be happening again but now the 0% interest has run out and my options have run dry it makes perfect sense for me to consolidate to the mortgage as my card minimum payments are leaving me tight - but doable - each month. And if I was to be made redundant I would be completely screwed at this point in time - certainly not on the horizon but happened to a friend and got me thinking about my financial future.

By remortgaging, debts will be cleared and I can start saving/paying down my mortgage quite significantly.

I am looking to sell my car in a year to get a smaller, cheaper vehicle but that doesn't help me at this point in time.

Pixie5740

If you get made redundant with this extra secured debt you'll be even more screwed. What has your mortgage broker suggested after the unsuccessful application to the Post Office?

Can you shuffle your CC debt to other 0% cards? It might be worthwhile going over to the Debt Free Wannabe board and posting a statement of affairs to help you improve your current budget.

Thrugelmir

SpecialMcSpesh wrote: »

my card minimum payments are leaving me tight - but doable - each month.

Perhaps run with this option until you can rid yourself of the car finance.

Lenders will then see that you are capable of managing your financial affairs in a responsible manner.

wannabeprudent

I did this recently with the NatWest via a broker. It took my broker some leg work and chats with his BDM before he applied for a DIP. All in all the broker made it a painless experience.

SpecialMcSpesh

If I was made redundant after consolidating into my mortgage I could happily take a 50% pay cut, the pressure would be off having to find such a well paid job.

My mortgage repayments would still be really low, nearly half what renting would be costing me.

Mortgage advisor has recommended pursuing the Natwest application.

Thanks Prudent, that's what I wanted to hear.

ACG

Ive used natwest for a couple of large debt consolidation mortgages and both went through without a hitch. Obviously I do not know the finer details but in theory it is achievable.

Landofwood

What does 60/40 in your favour mean? Sounds made up?

wannabeprudent

Landofwood wrote: »

What does 60/40 in your favour mean? Sounds made up?

Maybe the OP broker has spoken to their NatWest BDM who in turn has spoken to one of their underwriters on a view on the application and it is them who have given the 60/40 response.

I know in my case the broker spoke to his BDM on my specifics who spoke to an underwriter who said based on my scenario it should be favourable to them, these were exact words I was told by broker.

I suspect the BDM or underwriter cannot give cast iron assurance but have to use language to indicate where chances are greater than 50% and not to mislead by saying its 100% in the bag.