Mortgage and Good Salary but can't get a loan

ReadingTim

Acmt wrote: »

After tax I get around 1630.00 a month. My Mortgage and my Rent comes out of that. Payment for my parents healthcare was coming out of that for the last 8 months until they became retirement age. with food and bills the rest is taken by creditor repayments

Mortgage AND rent?!? Most people have one or the other. Unless you rent out the place you own and live somewhere else. But then you'd be getting rental income too... which is it?

Anyway, to answer your question - you could take some of the equity out of the property by taking out a larger mortgage than you currently have and using the surplus to pay off you other loans/debts. However, that isn't usually a very good idea because:

(a) you're turning an unsecured debt into a secured one; and

(b) you're blatantly spending more than you earn, so would only slip back into being in debt again, winding up in the same position as you're currently in, but with less equity in the house.

Head over to the debtfree wannabe forum and sort yourself out - you can't borrow your way out of debt

ReadingTim

ReadingTim wrote: »

Head over to the debtfree wannabe forum and sort yourself out - you can't borrow your way out of debt

Just seen that the OP's done exactly that - good luck OP...

Candyapple

Acmt wrote: »

After tax I get around 1630.00 a month. My Mortgage and my Rent comes out of that. Payment for my parents healthcare was coming out of that for the last 8 months until they became retirement age. with food and bills the rest is taken by creditor repayments

If you get £1,630 after tax/NI every month then you aren't earning £40k, your salary would be £24k. That's a massive £16k difference.

glentoran99

Candyapple wrote: »

If you get £1,630 after tax/NI every month then you aren't earning £40k, your salary would be £24k. That's a massive £16k difference.

I don't think they said they were earning 40k, that is the equity in their property

DPDRC90

Was about to post the same thing Glentoran99. It appears you misunderstood the OP Candyapple.

Candyapple

Apologies OP, I did indeed get it mixed up.

Still, on a £24k salary and only £5k debt, something has gone very wrong as it should be more than manageable.

1. Please list all credit card limits, along with outstanding balances.

2. Do you have any other loans / overdraft / car finance etc?

3. Do you have any late payments / defaults / CCJs?

4. Are you on the electoral roll (does it show on all 3 files?)

5. Do you have many other 'credit' accounts showing on your files such as bank account / mobile phone etc.?

6. Have you made any credit applications in the last 12 months?

EssexHebridean

Being dealt with over on DFW now - thanks for steering the OP in that direction folks! :T

Acmt

Yes I own a Property which my parents live in and I pay the rent on. I rent an apartment with someone else hence rent and mortgage payments.
I cannot get equity from the property as you go through a new mortgage application and because of my credit report I was declined

Acmt

£24 K Salary, £5K Debt.
£40K of Equity in my Property but cannot access this.

Herzlos

Acmt wrote: »

Yes I own a Property which my parents live in and I pay the rent on. I rent an apartment with someone else hence rent and mortgage payments.

Is moving home for a short while to save the rent payments a viable option?