Desperate plea for advice!

sunshineinmypocket

Long and complex situation but I will try and keep it succinct

Applied for further advance in January 22 to fund building works (due to start in March 22)

Affordability + credit check no problem.

Issue with valuation of the property which held things up. House was initially valued as per the index price - then was randomly down valued for reasons no one could explain. 

Lots of to-ing and fro-ing but decision was eventually made to do in an in person valuation. Only problem was, by the time this was arranged, the roof was completely off and as such the house was un-mortgageable. 

So the whole thing had to go on pause - no problem said the broker, we have 6 months so let me know when the roof is back on and we can pick it up.

Obviously this left us with a problem in funding the rest of the building works. But we had no real option but to carry on at this point. So we have loaded up long term 0% interest credit cards to the tune of approx £60k

Reassured by the broker that this would all be ok from the mortgage provider point of view. 

Get to this month, try to pick everything back up.

But our application has been closed. Turns out it was only valid for four months.

So have to make new application. Except now we don’t pass the credit check due to the credit cards as above. 

Underwriter is (so far) having none of it despite our Broker explaining all of the above. 

BDM is happy with affordability. 

Current LTV as per index price and without taking account of added value from building work is 59% 

Our combined income is £154k

Majority of my income is made up from zero hours contract work which complicates things again. 

Outstanding mortgage is £349k

85% LTV on new predicted valuation would give us an additions £180k or thereabouts

We would use this to pay off the accrued debt 

We are currently awaiting the response to a second appeal but no holding out much hope. 

We feel our only hope now is to go for another provider and suck up the ERC. But is this a realistic prospect? 

Current mortgage is with Halifax who we understood were generally quite flexible. 

Does any one have any recommendations of other providers who may look more favourably on our situation?

Many Thanks

K_S

@sunshineinmypocket Assuming that Halifax is a no-go, you're willing to stump up the ERC (you should be able to add it to the mortgage) and there are no affordability issues (as per lender calculators), based on the very limited info in your post it should be possible to do a debt-consolidation capital raise remortgage at 85% LTV. Your broker should be able to recommend a suitable lender. If you don't have confidence in your current broker, then the MSE guide here will help you find one.
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Alternatively, ask friends, family or colleagues for recommendations on brokers that they have used and trust. Due to the specifics (ZHC, debt con, amount of debt, 85% LTV), this case is likely to need a bit of time and effort that the volume brokers might not be able to give it.

If the ERC is extremely high and/or you aren't able to do a capital-raise remo, then it may be worth exploring second-charge options. Again, your broker should be able to guide on this if needed.

Hope it gets sorted out soon, good luck!

ACG

You could do a secured loan. Some of them have no ERCs, so once the work is done you then remortgage or get a further advance with halifax to pay off the secured loan. 


It reminds me of when I worked for a bank, a bloke had a mortgage with us. He demolished the house and then applied for the money to rebuild it. Initially we declined it because there was no house. But then we accepted it for exactly the same reason (ie there was no house). There was no real value in the land, so as a lender we were forced to give him the extra money otherwise he had £300k secured against a pile of rubble.

simon_or

I'm sure you can get a remortgage or a second charge mortgage, just get a good broker on the case.

Your current broker has already made an error by cavalierly telling you that it would be ok to rack up unsecured debt for a future further advance.