remortgage when credit cards maxed out?

beckstar1975

Hello

We have a house worth approx £440k with a mortgage left of £117k.

Currently paying approx £2k a month servicing credit card, secured loan and personal loan (accrued over a few years), just making minimum payments.

We want to increase mortgage to about £315k to pay off debts and then do a loft extension this would still leave us with over £1k more a month than we currently have.

Will anyone lend to us or will our previous history scupper it? No missed payments. . .

K_S

@beckstar1975 Will a lender (in principle) be ok with you doing a capital-raise remortgage for debt consolidation+home improvements? Yes. The final LTV will still be < 75% which is good with respect to debt-con criteria.

Whether the numbers add up for the borrowing required with depend on the specifics. You could try playing around with a few lender affordability calculators and see what they return.

https://online.accordmortgages.com/public/mortgages/quick_enquiry.do
https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator

If the numbers are tight, there are lenders who will consider disregarding debt to be consolidated. To summarise, as long as your income is sufficient to support the borrowing levels required, you should have options.

beckstar1975

Thanks, this is reassuring. I'm just worried they'll look at the fact that we've been in Max credit cards for several months, mainly as the repayments are so high . ..