Remortgage

melj16

I'm wanting to release equity from my house to pay off £20k debt..... and another £20k for a deposit towards another property. This would take my LTV to 85%.

I have £44k income and two dependants.

Just wondering how willing lenders are to remortgage for debt consolidation? 😬

Thrugelmir

Lenders have a duty to lend responsibly. Much will depend on the finer detail of the application in particular your credit history.
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melj16

Thanks for your reply. I do have a high level of short term borrowing. I do not have any other loans/ finance ....etc.....£20k on credit cards and a small mortgage. I have an unblemished credit history thankfully.

melj16

I am planning to pay some of the credit card debt off before applying for the remortgage....should get it down to £15k.

Thrugelmir

melj16 wrote: »

I have an unblemished credit history thankfully.

Credit history is easily analysed in many different ways. Issue for the lender is that statistically you are likely to simply build debt again in the future. Debt consolidation provides the solution not the answer.

2 mortgaged properties with minimal equity exposes you to greatly increased risk. Leveraging with debt isn't a guaranteed way of making money. Often totally the reverse. As when matters go wrong they can end up wiping you out completely. Something an underwriter would need to consider.

melj16

Thank you

I think getting the debt down as much as possible myself is going to be the way forward and is what I had originally planned ..... just wondering if additional borrowing would have been a quicker way to do it.