remortgage to pay debts

worriedDan

Hi

I have a 75k mortgage against my house which is worth around 150k.

We have 50k of unsecured debt that is making me ill.

Would any lender consider allowing us to remortgage in order to pay off some of this debt?

glosoli

Max LTV may be a barrier however if you have the affordability it's possible.

Thrugelmir

Would releasing the equity provide the solution not just the answer.

worriedDan

Thrugelmir wrote: »

Would releasing the equity provide the solution not just the answer.

I do get what you mean, however I will never ever use a credit card again. This would be a one off and a chance to press the reset button on our finances. Our debt is shocking and I take full responsibility. I don't know anyone who owes the amounts that we do, so I need to sort it.

Qfer_cucumber

Dan, we were in a similar position.

Left on mortgage £85k
Credit card and overdrafts £31k
Wanted to borrow £10k for much needed house improvements
House value luckily for us is around £290k

I honestly thought we'd never get a remortgage based on the debts. But I called the Coventry BS and after going through some questions they gave us an AIP. We then had to speak to one of their advisors who when through all of the affordability checks and they tell you which of their mortgages they can offer you. They sent out the application, we sent it back and now it's going through with the solicitors (which were included with our remortgage product).

Finally feel like we're back on track after so long being depressed with money worries. Hope you're successful too.

getmore4less

I see you have found debt free wanabee

transferring the debt to the mortgage can be part of a well constructed plan.

All the other bits need to be in place first and the mortgage used to reduce interest cost because of high rates elsewhere.

Thrugelmir

worriedDan wrote: »

I do get what you mean, however I will never ever use a credit card again. This would be a one off and a chance to press the reset button on our finances. Our debt is shocking and I take full responsibility. I don't know anyone who owes the amounts that we do, so I need to sort it.

I doubt that you are alone. Facing up to the problem head on is a major step forward. Be open and transparent in your dealings with lenders. Then you'll build their confidence. No one is going to judge you.

Suggest you first approach a broker as they'll be best placed to find a suitable lender. Depending upon the finer details of your personal circumstances.

MyOnlyPost

It is a good plan only if you follow through with it.

My parents bought their house in 1982 using right to buy and paid £7k. they finally paid it off 5 years ago after 4 remortgages to pay off debts, replace windows, pay off debts again. After paying £7k for the house their final mortgage was for £35k, not a lot by todays standards but an insight into how it can spiral if you let it

Enough17

Dan, you're not the only one...we're in a similar situation. Mortgage about 93, value £160k and 50k worth of cc debt.

Been on here most of the day reading debt free diaries etc.

Considering either selling (don't want to), re mortgage or DMP. Any advice much appreciated. Not sure if just me but find the site a bit confusing as in where to post my first post...can only see reply option. Am using phone so may try laptop...

Thanks in advance. Feeling desperate and very down...two children to think of and want to be debt free for them. Never had a credit card till they came along at age 35..0% deals and a husband who spends money like water....was managing till he had an accident and was out of work for 5mths. Have missed 2 cc payments this month so need to take action now before the downward slope!