Tips for getting additional borrowing

MINCTbw

I have a mortgage at 24% LTV currently (i.e. very low).

I have four years remaining on a good interest rate, indeed the best I could find last year when I took it.

I also tried to take some additional borrowing, but was declined - and they couldn't/wouldn't tell me why.

Actual figures involved:

House value: 130k
Outstanding: 31k
My salary: ~21k

By a BotE envelope calculation, it looks like they "should" be willing to lend me more, right?
Do we have any tips on getting an application approved? It's been 6mo so I will try again this week, I think.

Many thanks

ACG

You do not need to do a back of the envelope calculation - the lender will have an affordability calculator, put the figures in there, that should be spot on.

Get a copy of your credit report and see if there is anything on there that could be a problem.

Failing that, you have a couple of options - a new lender or a secured loan. But I would still go through your credit report(s) and affordability calculators first.

AnotherJoe

How old are you ? Are you, say, 70 and are asking for a 30 year pension?

MINCTbw

^ Credit report, I had never thought of checking mine, good idea. I imagine MSE will tell me how to go about that, thanks.

^ age, I'm 32 so shouldn't be a problem.

MINCTbw

So, I checked Experian and I have a score of 796 which is the middle of "fair".

I do have about £24,000 of non-mortgage debt. I have other liquid assets far exceeding this, so I COULD pay that off (but don't want to, the interest is low).

One query - is it ever possible to get additional lending from someone other than your existing mtg provider?

haras_nosirrah

the 24k debt on a 21k salary will be the reason

A lot of lenders don't like debt being more than 50% of your salary

[Deleted User]

MINCTbw wrote: »

So, I checked Experian and I have a score of 796 which is the middle of "fair".

Unfortunately, Experian don't lend money, hence no one cares about their score.

What data actually appears on your credit files (all three)?

AnotherJoe

MINCTbw wrote: »

So, I checked Experian and I have a score of 796 which is the middle of "fair".

I do have about £24,000 of non-mortgage debt. I have other liquid assets far exceeding this, so I COULD pay that off (but don't want to, the interest is low).

One query - is it ever possible to get additional lending from someone other than your existing mtg provider?

Hmmm I wonder what the problem coudl be ? :rotfl:

Never mind the stoozing you are doing, from the POV of the lender you have run a massive debt massive = (it's more than your salary) and you now want to borrow more !

haras_nosirrah

If the 24k is on credit cards they will be taking that as a payment of 720 a month.

If you want to do additional borrowing on the mortgage then you need to pay down some debt (get your outstanding to 10k or less) and wait for it to show as cleared on credit file.

Then subject to affordability with your lender you may have a chance

MINCTbw

Hah, ok - thanks, maybe that is the problem, then.

I have other liquid assets I could use to pay them off but I'd want to hear from the lender that that would change matters. No intention of paying them off yet if it wouldn't "guarantee" more loan availability. But perhaps they will be shy about making promises like that, hmm.

Thrugelmir

What's the purpose of the additional borrowing?