Halifax and Rmortgaging

bamgbost

Hi All

We got our mortgage almost 2 years ago by the skin of our teeth (had historic arrears, etc) via a broker. It was a 2 year fixed deal. So its almost time to renew it.

Our mortgage was initially with Tesco... and they sold it to Halifax. So Halifax is now our mortgage provider.

Now my current situation is that my credit file isnt the best, I have a high debt to income ratio. ( through loans for house improvements and car). In order to correct this I feel, that it could be wise to borrow from equity in the remortgage process and clear some debts once and for all.

So my Question is 2 fold.

Firstly, how easy is it to remortgage with an average credit file? Is it easier to just stay with Default provider? (in this case Halifax) Do they still recredit score you?

and Secondly, is it straight forward to get equity money released to clear debts from said provider? How does that process usually go.

I think we approximately have an LTV of 85%, with the additional borrowing me may move to the 90%.

Thoughts / Advice pls.

Thrugelmir

Are you being offered any new Products by Halifax? While your mortgage is owned by the Halifax. It was underwritten by Tesco's Bank. Likely that the Halifax will perform credit checks in moving you onto their books and one of their own products.

Obtaining a further advance by release of equity will require a full application , credit checks, etc. Though Halifax do cap total lending at 85% LTV on additional borrowing. With a further requirement that you must have held your mortgage with them for 6 months.

bamgbost

I have not yet been offered any new products no. The mortgage is due to renew in August. I guess I am miles too early currently.

I hope if its to stay with them there will be no need for further checks by them.

On another page, i have been advised to treat the equity loan as a seperate application. Which makes sense