Mortgage consolidation.

STEWY923 · 17 July 2019 at 2:23PM

Afternoon everyone hope your well.

I've recently built an extension on my property and increased the value of it quite a lot however in doing so my wife and I have had to get a few loans to complete it. I've made some enquiries with a mortgage broker to consolidate the loans into the mortgage so we don't have such a massive outlay each month however we've been told that approx 4 weeks ago mortgage lenders changed the ruling on lending for consolidation purposes as they don't believe the extra money would be to pay off the debts therefore not giving us the opportunity to borrow.

I find this new ruling quite ridiculous especially as we own more than 50% of the property.

Can anybody shed some light on this for me.

Many thanks for your time.
Have a great day.

ACG · 17 July 2019 at 3:59PM

The broker is talking rubbish.

You can go up to 90% LTV with debt consolidation with a couple of lenders, 95% in some cases.

However, it is a bit of a hot potato at the minute because claims management companies are making lots of noise about debt consolidation mortgages and trying to get compensation so you may find some brokers do not want to do it or go to the n'th degree in paperwork to try to prevent complaints.

Silly really as it can be a decent way to get back on track. Try a different broker.