Remortgage to consolidate debts

cpj1982

Has anyone any experience of remortgaging to consolidate unsecured debts? We purchased our house 2 yrs ago for £207kwith an 80% mortgage and have unsecured debts of £77k which were taken out to completely renovate and extend the property. We are now looking to remortgage to consolidate these debts into the house as that was what the money was used for. Joint income is £80,000 per annum, we are looking for 80% Ltv mortgage. Have spoken to a broker who says it sounds fine and come up with a natwest product. What is the likely hood of being accepted?

cpj1982

Sorry forgot to add local estate agent valued the house at £325k

Thrugelmir

Be guided by your broker. As they know the detailed circumstances behind your application.

AnotherJoe

Cpj1982 wrote: »

Have spoken to a broker who says it sounds fine and come up with a natwest product. What is the likely hood of being accepted?

I'd have thought the broker would be the person to know that since they are coming up with this product !

Mortgage_724433

Figures would seem feasible from you've stated, so as long as the mortgage broker ensures a lender is appropriately sourced and assessed you shouldn't encounter too many issues.

Good Luck

cpj1982

Thanks for the replies. I understand the broker is in the best position to advise but an just a little nervous as no credit scoring has been completed yet. We have no adverse credit at all but I know all this unsecured debt has an adverse effect on your score.

Thrugelmir

cpj1982 wrote: »

We have no adverse credit at all but I know all this unsecured debt has an adverse effect on your score.

Lender will review your previous 6 years credit history in arriving at a decision. Not just looking at the fact that you owe £x today. "Credit checking" is equally about profiling potential borrowers these days. As people do fall into distinct camps that history clearly reveals. Lenders are assessing the potential risk of default in the future.

cpj1982

Thanks hopefully all be ok then. We have no adverse credit on our records and have closed any accounts we are no longer using.

amnblog

You may have a couple of issues here.

I am not sure Nat West allow debt consolidation to 80%. Lenders put a limit on remortgage loan to values when raising funds and I don't believe Nat West will offer more than 75%.

The second issue you may come across is a decline by the Lender due to the level of unsecured debt (nearly a year's income in your case).

That said, there should be options, you will need your broker to perform particularly well.

cpj1982

Given that I have been through this with a broker and he came back with that product surely that's an indication that they accept 80% including debt consolidation? And the unsecured debt is being repaid??

018125

cpj1982 wrote: »

Given that I have been through this with a broker and he came back with that product surely that's an indication that they accept 80% including debt consolidation? And the unsecured debt is being repaid??

Don't pay any attention to AMN, he gets confused easily bless him.

Natwest lending criteria for remortgages states:

Up to 90% LTV accepted on debt consolidation, but no restrictions on amount