Home improvement (extension) loan?

Foreverhopeful_2

We moved at the end of last year to a smaller house with the aim of reducing outgoings and having a better standard of living, which has reduced our mortgage & coucil tax by 50% and overall (we paid off a personal loan with equity from house sale) we are £1000 better off on our outgoings per month.
We have decided to extend our new house to give extra living space and downstairs cloakroom and have been quote £28,000 total build. We have £18,000 in savings to cover part but we're looking to borrow £12,000 to cover the rest and some contingency, however our bank has refused us a personal loan. We have a joint account with them and both salaries and all outgoings go through this, our 18k savings are also with them however between us we have around 16k in credit card debit and I have a personal loan for a car with around 15k outstanding. On all of our obligations we have never defaulted or been late with a payment and our credit rating is excellent so we're struggling to understand. Our CC debt is not worse or better since we moved and since then we have paid off 1 loan, cleared 2 HP agreements (for previous cars) and taken out the loan for my current car. Our joint salaries gross are around 70k.
Our next step is to speak to our mortgage provider to borrow however we had wanted to avoid this as will take our LTV to less than 75%
Any advice?? We have the builder pending start as we never had thought the bank loan route would have been an issue....

19lottie82

Yes, pay off your car loan and credit card debt then re apply.

It's bonkers to have 16k in credit card debt when you have 18k in the bank. Unless the interest on your savings is more than the APR on the loan / cards, you're just throwing money down the drain. Literally.

[Deleted User]

That's quite a bit of debt you're carrying. Affordability is likely to be the issue.

You may not be able to borrow more until you have paid down some of your existing debt. It may be worth one more application elsewhere, but I doubt you will get the full 12k.

somethingcorporate

You already have almost 50% of your salaries in debt, this will be the sticking point. Pay down your debt and start again.