Re-Mortgage or New Mortgage

City_Girl_2

Here goes.... please be gentle, I am after some advice if possible..... So I have finally made the, right, decision to sort my credit card debts out, they are pushing £20k, I am disgusted in myself but my head is now well out of the sand and I have decided to try and get out of this mess ASAP!  Myself and my husband thought about consolidating the debts by an additional borrow from our current Mortgage Company who, after going through an affordability assessment, declined our application due to our outgoings which are minimal apart from the credit card repayments.  Our house is currently valued at £240k and we owe just under £69k over the remaining 12 years. I pay almost £400 a month on credit card repayments and cannot understand why our Mortgage Company could not see that this amount would be freed up to cover the extra the additional borrow repayment. So we are thinking of either re-mortgaging to another Lender to include the debt amount as an extra borrow or selling, paying off the debt with some of the equity, using the remainder as a big deposit and getting a new mortgage for around £60/70 and paying it off over 10 years.  So my question is would we struggle to get a new mortgage/re-mortgage to either stay where we are or to sell and buy again with our finances as they presently stand, with the credit card debt/repayments?

Hope this makes sense and any advice of where we go next would be much appreciated. Thanks

amnblog

You probably will be able to secure lending, but don’t be in a hurry to secure current unsecured debt again your home - particularly if you have a history of building up debt.

MovingForwards

Perhaps see the rejection as a good thing and head over to the debt free wanna be sub-forum, get help and guidance to pay your debt down rather than securing it on your home.

Any time people look at taking a loan or adding it as a secured home loan to clear credit cards, it rarely works as the credit cards are used again. People then end up in a bigger financial pickle.