Borrowing more on existing mortgage

Sarahlou08_2

Hoping someone can help. I have recently applied to have £15,000 added onto my mortgage to clear off debt that we have on loans and cards (approx £12,000) from renovating the home and the rest for home improvements (new roof). We are paying out over £450 a month for our debts so seemed logical to take out more on our mortgage (we have 70k in equity) due to putttinf down a large deposit on the home in 2017.
I went through to Halifax who gave me a quote of an extra £120 which was great. He took all my details and the usual expenditure questions and said he would need to refer me to a mortgage advisor as he was unable to take it any further. He said in 9 out of 10 cases for debt consolidation this was quite normal. Again more details were taken from him and he recommended how we should repay etc. He advised the AIP had been accepted but then said the computer has told him to send to the underwriters to make a decision. He came back today and said they have given approval and he would send out the recommendation to us and declaration and to sign and sent back. We also need to send in my payslip before going off on maternity leave. The mortgage advisor then said it would need to be assessed again once all received.

I’m really confused, surely if the underwriter has agreed it why does it need further checks? He has said it would need a full credit search but I can already see they have been on our credit file as there is a footprint. Is anyone able to tell me from last experience if this is likely to be accepted?

Hope you can help, I feel this process has been worse than my first mortgage application !!!128584;.

enthusiasticsaver

Personally I would not put unsecured debt on your mortgage. It may bring the monthly payments down now but it will cost you more in the long run as you will be paying it back over a much longer period. It also leaves you vulnerable if you are unable to pay your mortgage due to sickness, unemployment, interest rises and so on.

You may have been referred due to unaffordability checks. The bank would have seen your outstanding debt and may be thinking that you want an increased mortgage in addition to your existing debts as there is no guarantee you will pay off your debts and may just spend the £15k on something else.

Hutchd97

Hi,

It is best not to secure previously unsecured debts to your home as it is normally over a longer period and therefore you end up paying more, however if additional monthly disposable income is important to you in your current circumstances then this is normally the only way to do it.

The credit search that you can see on your credit report is probably from the "soft" initial credit search they do for the agreement in principle. They will then request the documentation (normally just proof of income) then the underwriter needs to assess that again to make sure that tallies up with what you told them, it is all very normal.

Once they have assessed that and all being well they will issue the mortgage offer. Once you have that you can then arrange to draw down the additional funds.