Advice please

razor1981

I have a mortgage that is £87k and other debts around £42k.
My house value is roughly £300k.
Apparently I can't remortgage to reduce the debt as on the last remortgage cycle we did some then.
What options do I have now of consolidating the debt?

TomCollier

Hi razor1981,

Generally speaking, you are correct however this is down to the policy of the lender you are currently with. Lenders may stop you from consolidating debt repeatedly as a way of ensuring they aren't lending to people with lifestyles dependent on unsecured borrowing.

A broker will be able to help you secure a new mortgage with the debt consolidated, however this may not be with your existing lender.

Many Thanks,
Tom

razor1981

Thanks Tom.

So your recommendation would be to speak to a broker and they should be able to sort something?

TomCollier

Yes, I appreciate that's a bit of a stock response but a broker will be able to help. The main consideration (aside from the fact you have previously consolidated debt) from the lenders perspective will be the overall loan to value ratio and debt to income ratio. In this example, your loan to value is not an issue..

I am new to the MSE forums but I'm an experienced adviser and would of course be happy help. Otherwise, any whole of market broker will be able to help you with this, they'll be able to address the repeat debt consolidation prior to submission for your peace of mind.

I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

kingstreet

You remortgaged when you came to your current lender.

You would now be seeking a further advance/additional borrowing from your current lender, not a remortgage. Many lenders don't offer further advances for debt consolidation.

As Tom has pointed out another remortgage may be available from a new lender but you should consider the implications of repeatedly using your property as an ATM and turning short-term unsecured debt into long-term secured borrowing.

Thrugelmir

razor1981 wrote: »

What options do I have now of consolidating the debt?

2nd charge secured loan. More expensive than a standard mortgage.

Have you sought assistance on the Debt Free Wannabe board? Consolidation more often or not provides the solution but not the answer.

razor1981

I've read elsewhere that If we were to say we're going to do home improvements we'd get the money, if we chose to pay the debts off after getting the money would there be any issue that we've done no home improvements?

MovingForwards

razor1981 wrote: »

I've read elsewhere that If we were to say we're going to do home improvements we'd get the money, if we chose to pay the debts off after getting the money would there be any issue that we've done no home improvements?

Fraud, CIFAS marker, potential to have mortgage called in.

[Deleted User]

razor1981 wrote: »

I've read elsewhere that If we were to say we're going to do home improvements we'd get the money, if we chose to pay the debts off after getting the money would there be any issue that we've done no home improvements?

You consolidated debt the last time you remortgaged so are you sure it's wise to do the same again this time round? What is the root cause of your debt? Do you have something to show for it such as a new extension or is it due to general overspending? If it's the latter you'd be better heading over to the Debt Free Wannabe board for advice on how to repay your debts and it won't involve consolidating.