Remortgage Uncertainty

i4.0

Hello,

I would like to remortgage from my existing interest only mortgage to a fixed rate repayment mortgage.
Outstanding amount on current mortgage £143,000
Debts:
£15k car finance
£10k new windows
£4k credit card
House valued at £185,000
Gross annual salary £50k
I would like to consolidate the two debts and request £168,000
Current credit score with Equifax is 430
I can afford £800 per month for new mortgage payments.
I am 44yrs old and I think I would need shorter term than 25yrs...
Based on the above information:
What are my chances of getting a mortgage?

Thank you.

amnblog

Your issue here is with the likely value of the property.

Remortgaging with additional lending to 90% of value is available but not common in the market.

A property you believe to be £185,000 is liable to be assessed as lower for remortgage.

Remortgage current to repayment - no problem
Raise extra - yes
Get to £168,000 probably no.

i4.0

Waste of time asking that question...

i4.0

And what does “raise extra - yes” mean?!?

pinknsparkly

i4.0 wrote: »

And what does “raise extra - yes” mean?!?

My reading of the response is that amnblog is saying is that yes, you probably can increase the size of your mortgage in order to raise some extra cash to pay off your debts, but as they say on the following line, they feel the lender is likely to assess your house value to be less than £185000 and therefore you'll struggle to get a mortgage for £168000. i.e. yes you will be able to increase your mortgage but may struggle to increase it as much as you'd like.

I've absolutely no experience of remortgaging (bought our first ever property in Dec 2018 so won't be remortgaging for a while) so have no opinions of my own to add I'm afraid!

csgohan4

Some lenders when you say you want to remortgage to consolidate debts may not like it

i4.0

Thank you for the ‘clearer’ response.

A4445

Lenders have tightened up significantly on remortgaging with debt consolidation. Some will only offer loan to values of 75-80%. You could struggle, but it could be an idea to approach some lenders and ask if they can help.

Thrugelmir

i4.0 wrote: »

I would like to consolidate the two debts and request £168,000
I can afford £800 per month for new mortgage payments.
I am 44yrs old and I think I would need shorter term than 25yrs...

Using current regulatory affordability criteria. You may well struggle with this permutation. As lenders are required to assess your ability to cope with a rise in interest rates. At a point in the future.

getmore4less

What rate is your current mortgage
Which lender
Any retention deals on I/O

What rates are your debts

Looking at the current mortgage

LTV 80% (£143/£185)

2.1% 1k fee
25y £144k 2.1% £618pm
20y £144k 2.1% £735pm

LTV 90% (£166/185)

25y £168k 2.5% £754pm
20y £168k 2.5% £890pm

You are going to be stretched if all you can afford is £800pm

With a net income of around £3kpm you might be better off having a look at your finances on the Debt free wanabee board and review your priorities

https://forums.moneysavingexpert.com/forumdisplay.php?f=76

i4.0

Thank you, I think the more pragmatic approach would be to shift the debt.
But it would probably take me 5yrs!
Then just get a remortgage on the £143k, I’m just concerned about my age and having to look at less than 25yr mortgages now.
I don’t want it to go into my pension.
I’ll check out the other forum, thanks.