Remortgage to pay off debts and current mortgage

Rav1

Hi, i was hoping you could help.my situation is this. I have an interest only mortgage of 165k for the last many years. Made silly mistakes and got myself into credit card debt and an unsecured loan totalling 60k. I make all the payments and have never missed any payments. In total i pay approx 1600 each month for the above. I am 43 years old. I want to remortgage all these debts into 1 repayment mortgage. I have done some calculations and my home is worth 300k plus...so the ltv should not be an issue if i was to remortgage for around 230k (165k for existing mortgage and rest for loan and cards). The issue i think maybe the credit score etc ..even though to my calculations i could easily afford the repayment mortgage of 230k..i reckon even at a 5% rate the monthly repayments would be approx 1500quid...so would be lower and i know the loan would be paid off in time...i think the sticking point would be how much i could borrow on my salary..i earn 32k plus wife earns 5k..and also sticking point maybe that lenders may say you cant afford a 230k loan...but thats just it..i am already paying this debt in total each month for many years..this way i can actually start seeing the debt vanish...could you help on this or see a way through the sticking points? Thanks in advance.

AnotherJoe

There's no chance you'll get a 230k mortage on combined salaries of 37k. It's more than 6x salary. Can your wife get a better paid job and focus everything on using that to pay down loans starting with highest? Have you posted a statement of affairs on debt free forum here?

Thrugelmir

Consider downsizing. Rather than juggling an unmanageable level of debt.

csgohan4

Have a look at the debtfreewannabee forum to hammer down that debt

enthusiasticsaver

A few things are wrong with your plan.

Your income is insufficient to be granted a mortgage of that size.

Turning unsecured debt into secured by remortgaging is not advised.

You may have been making minimum payments for many years and interest only on your mortgage but that is not repaying it.

Post an soa on the debt free wannabe forum for advice. There is no magic answer. If your credit history is good and you can get 0% deals then cutting back to repay the debt may work.

If you are too far in debt then a DMP may be the answer. Without more information it is difficult to say.