Remortgage problems. Any other options..?!

Bexter

Will try and be brief- would really appreciate any suggestions or ideas. 
So our house is valued at £270k, in Scotland.  We have no mortgage currently due to an inheritance which cleared the outstanding mortgage last Nov (we had no say in how the money was used, long story).  So we want to remortgage at 150k to extend the house (we've been waiting 6 years to do this). Husband's salary is 42k, I am just under a year self employed, so can't use my income. We do have 20k of card debt that we want to clear with the remortgage. 
I'm talking to 2 brokers but we're struggling to get a lender - due to my credit score on the basis of high utilisation of the credit cards. We've been told there is nothing else of concern on the credit files. We can get a max of 115k on about 1.4% or the 150k we want at just over 3% (5 yr fix).  It seems frustrating that we're seeking under 60% LTV and will have no other debt ( no loans /plans etc at all) but can't get the 150k at a better rate. I'm wondering if we should take the 115k on a tracker with no ERC, clear the debt and remortgage again for the higher amount in 6 months, when the credit score won't be an issue? Or am I missing anything at all? 

Thrugelmir

The underlying concern will be that you go on to accumulate further unsecured debt. 3% rate reflects the the risk premium for the lender. On such a major project have you allowed for a contigency within your budget. Building work is notorious for overrunning. 

Bexter

Very happy to have as a condition that all credit card accounts are closed down. The debt resulted from conditions relating to the inheritance plus redundancy, setting up business etc. Contingency budget is included. 

ejc81

Bexter said:

 We do have 20k of card debt that we want to clear with the remortgage. 
I'm talking to 2 brokers but we're struggling to get a lender - due to my credit score on the basis of high utilisation of the credit cards. We've been told there is nothing else of concern on the credit files. 

No idea if this would work, but just chucking it out there. Can you not apply for another credit card or 2 which should in theory reduce your utilisation?  Then wait a couple of months for CF to update and reapply for mortgage? Like I said, just chucking it out there....

haras_n0sirrah

If you are just under the 1 year accounts why not wait until you have 1 year accounts and then your income can also be used 

csgohan4

ejc81 said:

Bexter said:

 We do have 20k of card debt that we want to clear with the remortgage. 
I'm talking to 2 brokers but we're struggling to get a lender - due to my credit score on the basis of high utilisation of the credit cards. We've been told there is nothing else of concern on the credit files. 

No idea if this would work, but just chucking it out there. Can you not apply for another credit card or 2 which should in theory reduce your utilisation?  Then wait a couple of months for CF to update and reapply for mortgage? Like I said, just chucking it out there....

That will not work, in fact make matters worse, more credit footprints and more credit application shows to a lender you are desperate for more debt. 

Debt will hit your affordability which it clearly is now, hit that debt and speak to a broker, preferably a local or non conveyor belt one

Bexter

haras_n0sirrah said:

If you are just under the 1 year accounts why not wait until you have 1 year accounts and then your income can also be used 

Thank you - I've been told there are only a few lenders who will look at just 1 year's s/e, so given the credit score issue won't have changed dramatically by then, I don't think it would make a huge difference?