Consolidating debt to mortgage

TABgate

Hi. We have recently applied to our mortgage lender (Nationwide) for additional borrowing to consolidate debts. Unfortunately our application was refused. I requested to speak with an advisor to take this forward, and was informed that they would contact me with 72hrs(is this worth it?)
We currently owe less than 50% of our house value, with additional borrowing this would increase to 70%.

betmunch

Aside from Nationwides usual problems, they are not very good when it comes to debt consolidation.

You might get a result when the advisor calls back, but I would expect it to be a waste of time.

If I was you I would wait for the callback to be sure they can't help, then approach a broker to sort it out.

Thrugelmir

TABgate wrote: »

We currently owe less than 50% of our house value, with additional borrowing this would increase to 70%.

The issue for a mortgage lender will be the management of your personal finances not the fact that you have an asset in the property. 20% sounds as if you owe a sizable amount of money in loans and credit cards.

TABgate

I did inform then that we were attempting to consolidate the debt into a manageable payment.

TABgate

Is there a link on the website to assist when looking for a mortgage broker?

betmunch

TABgate wrote: »

I did inform then that we were attempting to consolidate the debt into a manageable payment.

That's not a selling point for Nationwide I'm afraid.

You either fit what they want or you don't, it would seem you don't from your other posts.

You need to move to a lender that isn't so concerned about debt consolidation, or consider a secured loan.

Under the new MCD rules an Independent Mortgage Broker will consider both options for you

betmunch

TABgate wrote: »

Is there a link on the website to assist when looking for a mortgage broker?

Friends and family referrals are best.

I believe MSE refers to London and Country, but they are very hit and miss and target easy cases

Also try Google and check the advisor will be considered independent after the 21st March when the MCD goes live

Thrugelmir

TABgate wrote: »

I did inform then that we were attempting to consolidate the debt into a manageable payment.

Without wishing to sound blunt that's your issue not the lenders. Whatever the reason behind the accumulation of debt. The problem is yours to resolve. Statistically it's a fact that people that consolidate debt don't learn from the experience. Ending up in a similar position again at a later date.

I would suggest taking a look at the Debt Free Wannabe board. Lots of good advice on there and more importantly support.

TABgate

On the website it says not to make multiple applications if you have been refused.

kingstreet

It should read;-

TABgate wrote: »

... not to make multiple applications if you have been refused, without first obtaining professional advice

One speculative search is okay, but if you run up and down the high street waving your arms in the air, all you are going to do is run up potentially four or five speculative searches which could be damaging.

HappyMJ

TABgate wrote: »

On the website it says not to make multiple applications if you have been refused.

That's right you need to find out why, fix the issue (pay off the unsecured debts in this instance) then apply again to the right lender. Nationwide may not have done a "hard" check on your credit file as you are already a customer. They may have done a "soft" check if anything at all.