Best position for Re-Mortgage

New_Guy_2016

Hi All,

Hoping someone can give me some advice on the best way forward as predicting what Mortgage companies are going to rate you on seems impossible.

In summary come March next year we are going to be looking at re-mortgaging our house which will also need to swallow up our 2nd Mortgage. The reason we are waiting until March is due to us being unsuccessful a few months ago to re-mortgage due to some blips on our credit files so our broker advised us to wait another 6 months and we can look again.

However what I am trying to do is put any disposable money we have between now and then to good use in order to increase our chances of getting the the re-mortgage.

Below are our list of what I would call Debts as in just costs we are paying off which are not providing us any benefit anymore. I have also included our total standard Income and Outgoings.

Total Income: £4,329
Total Outgoings(includes monthly payments to debts): £3,740
Disposable: £589

Debts to pay off

Credit Card 1
Limit: 5000
Monthly: 125

Credit Card 2
Limit: 2550
Monthly: 80

Credit Card 3
Limit: 2250
Monthly: 60

Credit Card 4
Limit: 1350
Monthly: 40

Overdraft 1
Limit: 5000
Monthly Charge: 90

Overdraft 2
Limit: 1400
Monthly Charge: 20

Overdraft 3
Limit: 500
Monthly: 10

My logical initial plan is to start with the lowest debt and dump all the disposable on there in one go and this would clear the quantity quicker however may not necessarily hit the highest interest first. Also in terms of debt would credit cards look worse than overdrafts etc.

On top of this the way my wife is paid we have a free monthly wage payment in March of around £2,500 which is totally disposable.

The other option dumping all the disposable into our Mortgage which will bring our LTV down as with the 2nd Mortgage it currently stands at 89% so may get more options if got it down to 85%.

Any more information needed let me know

Any help appreciated

YHM

At present, I actually think you would struggle to get a remortgage with barely over 10% disposable income, so if you have the cash I would suggest overpaying on unsecured credit commitments to get your disposable income to a healthier level.

Some lenders will also restrict the LTV to 85% if you are consolidating your second charge onto your first charge.

Just a side question, if you have a broker, could he not have answered this for you? I'd be disappointed if my clients were asking questions I could answer on internet forums....