Remortgage and existing debt

LordFridge

All
I find myself in a difficult situation, and I hope that someone might be able to give me some better advice than my current mortgage adviser.

The situation is as follows;

I have spent the last 5 years doing a large extension to my home. I remortgaged 2.5 years ago and cleared the debt that i had accrued doing the first stages of the build.

I was open with the mortgage company and said that when the 2 year fixed rate finished, I would remortgage again to clear the debt of finishing the job off. They agreed verbally that that should be OK.

During that 2.5 year period my lender changed internal policy, and when I went in to talk to them they said that they wouldn't offer a further advance on my mortgage because I had taken one during the previous 5 years...............This totally scuppered my plan.

The debt is now sitting across 5 credit cards, and even though I have negotiated good rates on those cards where possible, the payments are big and I want the debt to be part of my mortgage.

I have talked to a mortgage adviser, and he has made some enquiries for me relating to moving to another lender. The lenders he has spoken to have said that they won't lend the money to pay off credit cards because it is a significant amount and if I was to rack up that level of debt again it would be unaffordable. I agree with that statement entirely, but have no intention (or reason) to do so.

I am now in an impossible position.

The good news is.....
1. The house has got significant equity in it - The remortage I want would be about about 70% LTV.
2. Affordability calculations say that lenders would in theory lend me about £20K more than I am asking for.
3. Initial Credit checks have come up fine.
4. I have closed down all other available credit that I used to have available to me.
5. Two of the credit cards are closed, so as the get paid off there is never any 'available credit'.

However, the bad news is because the debt is on Credit cards, the lenders still think that it is too risky.

I have suggested that a line be written into my contract with the lender to legally bind me to paying the cards off and closing them down, but was told that that was impossible.

I also suggested getting a solicitor involved who would oversee me paying the cards off and closing them down but was again told that it wasn't an option.


I am now stuck between a rock and a hard place. I am falling foul of the 'Computer says "No"' world, where no body is in a position to actually look at the logic of what I am asking for.

Can anybody out there offer any suggestions that might help me get what I am looking for?

Adviceneeded15

I would have thought that you need to change your mortgage advisor / broker. If you look at some of the threads on here a lot of people want to consolidate debt onto their mortgage. I think a new broker is the way to go as its their job to find a suitable lending match for you using their wealth of knowledge.

GRBWA

Definitely one for a broker to sort out as some lenders are more sympathetic to debt than others

LordFridge

My Mortgage Advisor hasn't given up yet, and he is actively looking at other lenders. the problem is that he started with the one that he thought would be most sympathetic.
I am not going to give up with him yet. I was just wondering if someone on here might have a positive experience to report which might help and stop me feeling so deflated.

Thrugelmir

You'll need to find a new mortgage lender.

[Deleted User]

Yes, get a new broker. I had a similar issue and she worked very hard to find a bank that would work with me. Halifax and Bank of Ireland were my best options.