Remortgage Catch 22

mppsbeag

Extend my existing mortgage

GMS wrote: »

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?

My current broker is fee free, he sorted out my mortgage for my auction property and didn't charge me.

My mortgage for £125 with a £12k downpayment was £695/month over 20 years, does that sound reasonable?

So I need to find out who may have declined me?

I didn't know that if I'm declined then that reduces my credit worthiness, this is all looking pretty bad now.

An option I'm considering now is to see my existing mortgage seller and try for an increase in the mortgage and the reconcile what's left as a loan.

Thanks for all your help....

B

Thrugelmir

Get a loan to cover the cards

mppsbeag wrote: »

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

Not an option that I would ever personally recommend. But worth consideration if it enables to you to at least get yourself into a stable financial position.

Why haven't you tried your existing lender though. Have you added £50k plus of value to the property? As that's a lot of money for renovation for what must have been a habitable property when sold at auction.

Will your income support the increased level of mortgage?

Was all the credit card spend in relation to the property renovation?

mppsbeag

Extend my existing mortgage

Thrugelmir wrote: »

Not an option that I would ever personally recommend. But worth consideration if it enables to you to at least get yourself into a stable financial position.

Why haven't you tried your existing lender though. Have you added £50k plus of value to the property? As that's a lot of money for renovation for what must have been a habitable property when sold at auction.

Will your income support the increased level of mortgage?

Was all the credit card spend in relation to the property renovation?

The house was a steal, I got it for £125k when it was on the market for £280k the year before, realistically it would sell tomorrow for £230k but as I'm only half way through the restoration (I only have a very limited time to work on it) I would put the value at more like £180k at the moment.

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Anyway if I could finance at least some of the debt, say £33k then I'd be happy to sort out a loan for the other £17k till I had the house up to £240k at valuation.

The problem though is - as my mortgage advisor tells me - that they can't see past me already being in debt to £50k on cards, despite the monies being used to pay it off.

As I say it's catch 22.

mppsbeag

Extend my existing mortgage

Thrugelmir wrote: »

Was all the credit card spend in relation to the property renovation?

I'd say that £40k was on the house, the rest was on tools and replacing my car after it was written off by an escaped horse.

The horse was fine, however a replacement car dented my emergency reserve to the tune of £5k, that's why I'm in a pickle.

Thrugelmir

Get a loan to cover the cards

mppsbeag wrote: »

As I say it's catch 22.

How much of the property is habitable currently?

mppsbeag

Extend my existing mortgage

Thrugelmir wrote: »

How much of the property is habitable currently?

I've been living in it for two years now, I work from room to room.

The kitchen diner is the only room I'm working on at the moment. The rest of the house though dated is very livable.

There's a couple of rooms completely done, the rest are just ready for cosmetic work, all the structural work is done.

Playing_with_Fire_2

Go to a new mortgage broker

Are all the credit cards at the end of the 0% time? Have you tried the MSE balance transfer cc soft search tool? Can you move some of the balance charging interest over to another? Call an old card and ask for a new BT offer without a credit check? [none of this would solve your problem, but it could save you interest and buy you time to arrange the mortgage or complete more of the renovations before the next valuation]

I had a mortgage with Nationwide and I could request additional borrowing after I'd had the mortgage for six months. There was a clause about the LTV, but it would be worth asking them if this is possible for your product.

mppsbeag

Extend my existing mortgage

Playing_with_Fire wrote: »

Are all the credit cards at the end of the 0% time? Have you tried the MSE balance transfer cc soft search tool?

Yes they've all reached the end of the 0% deals, I've always been really good at transferring deals in the past but despite never missing a payment my credit score is really dire. This is down to the amount of credit I have against my available funds, no-one else will lend me on a card.

Playing_with_Fire wrote: »

ACall an old card and ask for a new BT offer without a credit check?

I'd be all over this as a solution, can you actually request "without a credit check"?

I'll check with the Nationwide, I do think they seem a good company, I was won over by the moving in pack they sent out once I'd got my house.