High amount of debt and remortgaging

IWillBeFree

Hello MSErs


Hoping for some advice please.


I am due to remortgage in September and would like to know if you think I will be able to. My situation has changed since the last time I was looking into mortgages, in as much as I have built up a hell of a lot of debt. It is unlikely I will pay off much between now and September so I will be in debt by around £37,000 then.


I have a clean credit record, apart from a default in March 2010 for £5,000 ish to First Direct. No late payments or CCJs or any other issues with my credit reports.


My house is shown as estimated value £239,976 at Zoopla, with a range of £228,192 - £251,760.

I will be needing a mortgage of around £165,000.


My salary is £63,500.


Do you think I will be able to get another mortgage deal? How early should I start looking?


Any information, would be greatly appreciated.


Thank you


IWBF

ExpertAdvice

Are you looking to consolidate your debt of £37K onto your mortgage?

Does the figure of £165K include £37K?

"Clean record apart from a default of £5,000 in 2010". That is a quite a big default!!!

Has it been settled? If yes, when was it settled?

Also, what was it for?

IWillBeFree

Hi and thank you for the reply


The £165K is just for the mortgage, I am not looking to consolidate the debt.


The default was for a First Direct overdraft which defaulted in March 2010 and it was settled in May 2012 - apologies I put that wrongly in my earlier post.


Thank you

getmore4less

Start with

Follow on rate?

Current lenders retention deals

They benchmark for the next option but may be good enough anayway.

Then look at other lenders.

IWillBeFree

My current rate is 3.99% fixed until September.

It will then go on Standard Variable Rate.

No deals from the current lender, other than the above.

Is it unlikely I will get a deal elsewhere in your opinion?

getmore4less

I think you should get a broker to help find something better than your current lenders SVR.

IWillBeFree

Thank you. I just wanted to be prepared about what I may come across. It's been an interesting few months so worried this will go badly too.

IWillBeFree

Any other views would be appreciated.


Thank you


IWBF x

somethingcorporate

How has the debt accumulated? That's a massive amount of unsecured debt on that salary (on any salary!).

How does the rest of your credit file look?

I'd suggest you would be worth getting the views of a broker otherwise you could spend time (and searches) on lenders that would never lend to you.

Who is your current mortgage provider?

Landofwood

somethingcorporate wrote: »

How does the rest of your credit file look?

I'd suggest you would be worth getting the views of a broker otherwise you could spend time (and searches) on lenders that would never lend to you.

Who is your current mortgage provider?

Looks like he has already addressed these questions.

OP, you say "no other deals from Santander", have you specifically asked them? They normally offer retention rates, don't assume you have to stay on the SVR.

IWillBeFree

Thank you.

I have called my mortgage provider and the response was they have no deals to offer and suggested I reserached the market.

I have contacted a broker this week and waiting to hear about an appointment. Hoping it's not all desperate.