Remortgage advice to increase mortgage please.

Janie1975

Hi everyone,

I am looking at remortgaging and increasing my mortgage to include a new kitchen and bathroom in the next 12 months but as it's been quite a few years since I have done this I am not sure the best way to go about it.

I'll try and explain everything as best as I can:

Currently on a Halifax standard variable rate interest only mortgage (not fixed)

My mortgage is £186,500, and currently the house is worth around £285,000, but once work is done probably around £310K.

I'd like to add my husband to the mortgage and also borrow an extra £50K (maximum) to complete the work needed in the house.

Our credit scores are both around 530 (Clearscore)
Our joint annual income pre tax is £97K
Our joint debts of loans and CC's is £45K
Our on top earnings from bonuses is minimum £15K per year (have 5 years worth of P60's to prove this)

Before I start applying and affecting our credit scores, could anyone offer advice on a) whether this would be accepted, and b) who is offering the best deals at the moment?
I should add we will be changing this to a repayment mortgage.
We are 42 and 43 years old.

Thanks for reading!

Janie

getmore4less

Interest only mortgage and still massive debt(50% of income).

what are the plans to pay off the mortgage?

If it requires a move to a repayment mortgage how will you afford it?

Janie1975

Sorry, I should have been more explicit.

£10K will be paid off debt in February and the rest is on interest free credit cards with overpayments to eliminate in next 5 years.

I actually get £21K in bonuses pre tax every year on top of what I declare and husband gets commission but I can't declare these as guaranteed because it's a 'bonus' (that's the minimum I've had for the last 7 years), husband gets around £8K p/a.

We can easily afford to pay to double our mortgage in reality, but on paper it looks different. Hope that makes sense.

Janie1975

And as I said in original post, we will be moving towards a repayment mortgage when we remortgage.

amnblog

Your unsecured debt is not helpful and will remove some lending options from the list. Suggest you get some advice on this case from a broker.

Janie1975

Thanks AMN, we will do that instead rather than going straight to the Halifax.