Remortgage Catch 22

mppsbeag

I'm in a catch 22 situation, I bought a wonderful house at auction using a mortgage and have financed the renovation of it using 0% deals on credit cards. These deals are now lapsing and the plan to re-mortgage (on the improved house) to pay off the cards has floundered.

Unfortunately as I'm registering £50k in credit card debt no-one will give me a mortgage.

I'm using a mortgage broker, who's been brilliant, is there any mileage in trying another broker or do they basically all have the same portfolio of companies?

Would there be any advantage in me going directly to the mortgage companies, or trying to get an extension on my existing mortgage?

Should I swap all this unsecured debt for a secured loan of £50k

Any ideas would be welcome, I'm beginning to sink under the repayments now. I don't want to sell up, I've invested a lot of my time and effort on the project, it would be very hard for me to do this.

Apart from the debt, my credit is perfect, I've never missed a payment on anything, the last time I did this with no hassle at all. I paid off £30k without batting an eyelid.

Thanks in anticipation.... be kind.

Landofwood

Have you checked whether your existing mortgage permits "additional borrowing"?

https://www.moneyadviceservice.org.uk/en/articles/increasing-your-mortgage-getting-a-further-advance

GMS

Does you income support the proposed new mortgage?

Which lenders has your broker tried?

How long have you owned the property?

Which lender are you with and what penalties to leave?

mppsbeag

Extend my existing mortgage

No I've not got around to this yet, I've just got the bad news from my broker and I'm grasping for good advice from people with more experience. I've learned to use my broker too much and as he's hit a brikc wall I'm finding picking up the pieces a bit out of my comfort zone.

mppsbeag

Extend my existing mortgage

GMS wrote: »

Does you income support the proposed new mortgage?

Which lenders has your broker tried?

How long have you owned the property?

Which lender are you with and what penalties to leave?

I don't know what the income to loan equation is now, I was under the impression that it was quite flexible???

I'm not too sure who he's contacted?

I've owned the property for two years now.

I'm with Nationwide and there's no penalties now.

GMS

Did your broker not confirm the lenders they would approach? Surely they must have recommended somebody.

1. Complete fact find
2. Source lenders
3. Check affordability
4. Check criteria
5. Recommend


If you haven't been told a lender then how can you agree to a DIP/application?

New broker maybe?

mppsbeag

Extend my existing mortgage

GMS wrote: »

Did your broker not confirm the lenders they would approach? Surely they must have recommended somebody.

1. Complete fact find
2. Source lenders
3. Check affordability
4. Check criteria
5. Recommend


If you haven't been told a lender then how can you agree to a DIP/application?

New broker maybe?

They had told me initially that they'd be able to get me a mortgage with the Halifax

I gave him a wad of statements and after a week he's told me is that there's no-one who'll take me up on a mortgage.

I'm pretty new to all this, it's my second mortgage, I just trust the broker.

mppsbeag

Extend my existing mortgage

mppsbeag wrote: »

They had told me initially that they'd be able to get me a mortgage with the Halifax

I gave him a wad of statements and after a week he's told me is that there's no-one who'll take me up on a mortgage.

I'm pretty new to all this, it's my second mortgage, I just trust the broker.

Perhaps a new broker does look the way forward....

ACG

Some brokers need shooting.
Try it with halifax...oh it doesnt fit?....Nobody will do it.

Find a new broker.

On the face of it there will be lenders for it, but it comes down to affordability, loan to value etc so difficult to give a more definitive answer but having £50k of debt is not a deal breaker.

mppsbeag

Extend my existing mortgage

I think he's tried a few more than just the Halifax though.

I like to think he's just keeping me informed of the stuff I need to know about... I like to think that

Would you think that a broker would have generally the same list of mortgage deals as every other broker?

What do you think I should look out for if I needed to turn to someone else? I just get the feeling there's a lot of sharks out there.

Cheers,

B

GMS

mppsbeag wrote: »

I think he's tried a few more than just the Halifax though.

You shouldn't 'think' he has. You need to be told.

Trashing your credit file with speculative DIPs won't help.

Many lenders wouldn't consolidate that much so they'd be out straight away.

If you have no idea who has declined then how can you move to another broker? They may replicate the declined DIPs and lower credit score further.

Speak to your 'non shark' broker who is not informing you of anything and slinging mud. Better than being bitten by a broker who knows what they are doing I suppose.

Is your current broker fee free?