Consolidating outstanding debit into a remortgage... Help please

Promort

Hi, I'd appreciate if someone could help with my below query/situation:


Mortgage is due for renewal in the summer.
I have around £30k in debts that I would like to consolidate into the mortgage.
Aside from this I have a car loan of £16,000 however I still have the car which is worth around £22,000.

House is worth around £470k, outstanding mortgage is £270k (so would be looking to increase that to £300k).



Combined household income is approx £85k (including bonuses)... probably rising to around £100k in the next financial year (but I probably wont be able to prove that in time for my mortgage renewal).



LTV is not a problem, I just want some advice on the debt consolidation.

Questions:
1. Will my current provider automatically offer me a new deal for the outstanding £270k with no questions asked?
2. If I ask my existing lender for £30k extra to consolidate debts, I presume they will need to do a new affordability check which may rock the boat with any new deal they are about to offer me?
3. If I search for a new deal with a different lender, would I qualify for the £300k mortgage based on the above info?
4. Do lenders 'believe you' when you say you want to borrow additional funds to consolidate debts?


All help appreciated. Thank you

kingstreet

Possibly. Will depend on lender.

Credit scoring and affordability yes. Affect £ for £ transfer, probably not.

Possibly. Depends on lender affordability calculations and if you can evidence the variable earnings to a lender's satisfaction.

Yes. People lie about consolidating debt and suggest money is for home improvements, not the other way round.

Thrugelmir

1. Lenders do not have to perform affordability or other checks prior to making an offer of a new product. Though some currently do. The forthcoming EU directive may have the impact of making this requirement mandatory.
2. Without doubt they'll profile you i.e. credit check.
3. You'll definately have to jump through the hoops when switching lenders.
4. They can check or make it a condition of the mortgage offer. Even arrange for the solicitor involved to make the necessary disbursements.

Promort

Thanks for your answers.






I have absolutely no issue if the mortgage lender would prefer to
settle the outstanding debts directly.
Do you think I would be better off doing all of these negotiations through a mortgage broker or not?

getmore4less

have you fixed your overspending habbits

dimbo61

Why not look on your existing lenders website and see what offers they have for existing customers!
As long as you are not increasing the term or borrowing more then you maybe able to change to a cheaper deal ONLINE with no credit checks/affordability checks.
If you are paying less every month you might be able to reduce your unsecured debts over the next couple of years.

You have a Good Household income and still over £46,000 of debts?
You might well need the help of a Good Broker if you want to borrow another £30,000 to add to your mortgage debt

SueP19

getmore4less wrote: »

have you fixed your overspending habbits

Take it from one that knows, if you haven't then don't do it

TABgate

Hi. We recently applied to our mortgage lender (nationwide) to consolidate debts onto our mortgage. We currently owe less than half of the value of the property, and the additional borrowing would take us to 70%. Unfortunately our application was refused.
We haven't missed any payments on the debts or our mortgage.
Can anyone advise?

kingstreet

Finding another lender would appear sound, in the circumstances given.

You applied to Nationwide for a further advance, as you were an existing borrower. You are less likely to be accepted for this as you would if remortgaging to a new lender.

Debtslayer

Promort wrote: »

Hi, I'd appreciate if someone could help with my below query/situation:


Mortgage is due for renewal in the summer.
I have around £30k in debts that I would like to consolidate into the mortgage.
Aside from this I have a car loan of £16,000 however I still have the car which is worth around £22,000.
Do you really need the car then? You could sell it and buy a car for 6k, then you'd clear 16k of debt

House is worth around £470k, outstanding mortgage is £270k (so would be looking to increase that to £300k).
So you'd still have the car finance on top of the debts you want to add to mortgage?! This will affect how much you can borrow



Combined household income is approx £85k (including bonuses)... probably rising to around £100k in the next financial year (but I probably wont be able to prove that in time for my mortgage renewal).



LTV is not a problem, I just want some advice on the debt consolidation.

Questions:
1. Will my current provider automatically offer me a new deal for the outstanding £270k with no questions asked?
2. If I ask my existing lender for £30k extra to consolidate debts, I presume they will need to do a new affordability check which may rock the boat with any new deal they are about to offer me?
3. If I search for a new deal with a different lender, would I qualify for the £300k mortgage based on the above info?
4. Do lenders 'believe you' when you say you want to borrow additional funds to consolidate debts?


All help appreciated. Thank you

Hi
I've made some comments above.
You need to seriously think about turning unsecured debts into secured debt. Never really a good idea. Also how do you know if you manage to add it to mortgage you won't then go and rack up more debt?
You need to tackle your debts and subsequent spending habits that have led to this debt. If I were you I'd post I the Debt Free Wannabe board and see how you can sort out your debts.
You have really good salaries but frighteningly high debt and you need to address why.

TABgate

I contacted them to request further information about refusal and in awwitingvtheircreturn call (72 hrs) they said. Is this worth pursuing.
Martins site also advises not to make multiple applications.