Affordability

Foofighters

I have a joint mortgage with my sister and she has acquired £40k debt which we were looking to get a loan to pay off. The cost of the loan would be substantially lower than what she is paying now. Our mortgage only has 5 years to run. However we keep getting refused because of 'affordability' both for a loan and with our mortgage company. I really don't get it. We can prove that we can afford it and be better off and our credit scores are both good. I have considered selling as we have huge equity in the house but I won't get a mortgage!! What can we do? I do understand why affordability has been put in place but when you can prove that you can afford it, it seems that process takes over from common sense.

[Deleted User]

There's no guarantee that she will pay off the first loan. So the lender has to be comfortable that she can afford both.

Look at cutting costs to overpay the loan.

alexadams88

it's because you are trying to pay a loan from a loan. That's when affordability comes in. Try few more lenders and ask them that you need a loan to buy something else and not to pay your debts.

Pixie5740

If I'm understanding this correctly, your sister currently has £40k of unsecured debt in her name only and you want to increase your mortgage to turn the £40k into secured debt which you will then both have joint and several liability to repay?

There are a number of reasons why you might not meet the affordability criteria. What kind of mortgage do you have? Is it a BTL mortgage or a residential mortgage? Have you consulted a mortgage broker?