how common is this?

jan875

Hi,

How common is it for people to remortage their homes to pay off debts of 30k+ (regardless of whether you agree with this method or consolidation)

Would the bank/broker be horrified if someone applied for a remortgage with that level of debts, or is it something that they see regularly>

AnotherJoe

They see people attempting it all the time so they wont be "horrified".
Many of them will be turned down, as they should be, because by and large its an inadvisable thing to do for numerous reasons that you'll see discussed in the loans forum.

ACG

It depends on the LTV, your income and a few other bits but it does happen.

I recall doing £60k for a couple last year and about £40k for someone else. It is not common but it does happen.

It is not for every lender but here are a couple more open to it than others.

amnblog

It is all relative.


If you owe £30,000 and earn £30,000 the lenders are more nervous than if you owe £30,000 and earn £90,000.


There is nearly always a lender that will do it subject to affordability, security, and credit file.

jan875

amnblog wrote: »

It is all relative.


If you owe £30,000 and earn £30,000 the lenders are more nervous than if you owe £30,000 and earn £90,000.


There is nearly always a lender that will do it subject to affordability, security, and credit file.

We owe 30k on a 70k salary. What if we sold out current house and used 30k of our 100k equity and then took our a new mortgage using the remaining 70k as our deposit? Would we find it hard to to get a new mortgage due to the 30k debt?

amnblog

This all sounds manageable, a clean credit records would be helpful.

jan875

amnblog wrote: »

This all sounds manageable, a clean credit records would be helpful.

sort of clean.... a few late payment markers from 2+ years ago. no CCJ's or defaults though.

our unsecured debt used to be much higher but we have paid lots off. Would our past debt level be an issue for the lender?

amnblog

There are so many factors that can affect scoring. You will find a solution, how many options we wont know until the case is assessed professionally.

Thrugelmir

jan875 wrote: »

Would the bank/broker be horrified if someone applied for a remortgage with that level of debts, or is it something that they see regularly>

Lending money is a business to make a profit. Not to judge people. As they won't know you personally. Your previous credit history will be closely scrutinised for patterns of behaviour etc. Any final decision will also take into account statistical probabilities and the lenders appetite for underwriting this type of business at the time.