Debt consolidation remortgage

BigBus2017

Hi All, I just finished of a full house refurb including a loft extension, outhouse and improved EPC from D to a B rating. The house has increased valve from £500,000 to £660,000. 

My current mortgage balance is £233,000.(Barclays)

In the last 12 months both myself and my partner had to almost max out my credit cards limits and took on 3 small loans to finish of the house. 

We have 5 credit cards and 3 loans with total amount of debt £65k. 

We paying around £1850 per month to all these creditors. 

Current mortgage payment is £800. (Barclays 3 years left on the deal)

We need to consolidate £65k in to one payment. I need to find a mortgage broker to help us remortgage with Barclays to avoid ERC.  

We have a ok credit file, no defaults however in the last 12 months had some hard searches (due to loans) and the credit card  usage doesn’t look too good on file. All the statements clearly show it was used on building merchants. 

My partner is a home maker and we have 3 young children. 

My income is £69k basic with around £35k OT per year. 

Does anyone has/had similar experience dealing with debt consolidation using current mortgage provider and is it difficult to obtain.   

Any advice, recommendation, opinion or option will be much appreciated. 

gwynlas

My experience is years out of date but I once had to take out a second mortgage to pay for renovations before being able to consolidate the two down the line. A broker should be able to work out the most affordable route for you if Barclays is not happy to increase current loan. Common sense says that it should be straightforward but often this is not the case.Good Luck.

ACG

You should be fine doing it. Any reason why you cant just go to Barclays yourself?

BigBus2017

ACG said:

You should be fine doing it. Any reason why you cant just go to Barclays yourself?

In the past when when I applied directly to First Direct the whole process was so mentally intense; 2 x 1 hour job like mortgage interviews (btw mortgage was approved this was for a different property).
 

Since then I’ve always used MB, it takes away the burden of those intense interviews. Maybe it was a First Direct thing. I know they are known to be very picky.  

ACG

BigBus2017 said:

ACG said:

You should be fine doing it. Any reason why you cant just go to Barclays yourself?

In the past when when I applied directly to First Direct the whole process was so mentally intense; 2 x 1 hour job like mortgage interviews (btw mortgage was approved this was for a different property).
 

Since then I’ve always used MB, it takes away the burden of those intense interviews. Maybe it was a First Direct thing. I know they are known to be very picky.  

Maybe. But Barclays is the one lender I have kicked off our panel. 
They are terrible to deal with for a broker at least. 

[Deleted User]

BigBus2017 said:

ACG said:

You should be fine doing it. Any reason why you cant just go to Barclays yourself?

In the past when when I applied directly to First Direct the whole process was so mentally intense; 2 x 1 hour job like mortgage interviews (btw mortgage was approved this was for a different property).
 

Since then I’ve always used MB, it takes away the burden of those intense interviews. Maybe it was a First Direct thing. I know they are known to be very picky.  

All lenders are picky, they're letting us borrow tens of thousands of pounds, so they're right to be.
It's a case of doing your own due diligence and keeping your money management clean and healthy.
 

BigBus2017

[Deleted User] said:

BigBus2017 said:

ACG said:

You should be fine doing it. Any reason why you cant just go to Barclays yourself?

In the past when when I applied directly to First Direct the whole process was so mentally intense; 2 x 1 hour job like mortgage interviews (btw mortgage was approved this was for a different property).
 

Since then I’ve always used MB, it takes away the burden of those intense interviews. Maybe it was a First Direct thing. I know they are known to be very picky.  

All lenders are picky, they're letting us borrow tens of thousands of pounds, so they're right to be.
It's a case of doing your own due diligence and keeping your money management clean and healthy.
 

I agree all lenders are picky…some more so than others in my own experience. MB are great service providers in my owe experience they take away the stress of dealing with the whole application and find you a good deal. 

K_S

@bigbus2017 Well done on the jump in EPC!

Based on the very limited info and numbers in your post, it should be fine with Barclays. What you are looking for is called additional-borrowing/further-advance for debt consolidation. Barclay has an LTV limit of 80% for this but you should be well below that. You can play around with their affordability calculator to see how the numbers stack up for the borrowing you need
https://resources.barclays.co.uk/mortgage-calculators/residential-affordability?

You can either get in touch with your existing mortgage broker or the MSE guide here can help you find one
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

BigBus2017 said:

Hi All, I just finished of a full house refurb including a loft extension, outhouse and improved EPC from D to a B rating. The house has increased valve from £500,000 to £660,000. 

My current mortgage balance is £233,000.(Barclays)

In the last 12 months both myself and my partner had to almost max out my credit cards limits and took on 3 small loans to finish of the house. 

We have 5 credit cards and 3 loans with total amount of debt £65k. 

We paying around £1850 per month to all these creditors. 

Current mortgage payment is £800. (Barclays 3 years left on the deal)

We need to consolidate £65k in to one payment. I need to find a mortgage broker to help us remortgage with Barclays to avoid ERC.  

We have a ok credit file, no defaults however in the last 12 months had some hard searches (due to loans) and the credit card  usage doesn’t look too good on file. All the statements clearly show it was used on building merchants. 

My partner is a home maker and we have 3 young children. 

My income is £69k basic with around £35k OT per year. 

Does anyone has/had similar experience dealing with debt consolidation using current mortgage provider and is it difficult to obtain.   

Any advice, recommendation, opinion or option will be much appreciated. 

CSL0183

BigBus2017 said:

Hi All, I just finished of a full house refurb including a loft extension, outhouse and improved EPC from D to a B rating. The house has increased valve from £500,000 to £660,000. 

My current mortgage balance is £233,000.(Barclays)

In the last 12 months both myself and my partner had to almost max out my credit cards limits and took on 3 small loans to finish of the house. 

We have 5 credit cards and 3 loans with total amount of debt £65k. 

We paying around £1850 per month to all these creditors. 

Current mortgage payment is £800. (Barclays 3 years left on the deal)

We need to consolidate £65k in to one payment. I need to find a mortgage broker to help us remortgage with Barclays to avoid ERC.  

We have a ok credit file, no defaults however in the last 12 months had some hard searches (due to loans) and the credit card  usage doesn’t look too good on file. All the statements clearly show it was used on building merchants. 

My partner is a home maker and we have 3 young children. 

My income is £69k basic with around £35k OT per year. 

Does anyone has/had similar experience dealing with debt consolidation using current mortgage provider and is it difficult to obtain.   

Any advice, recommendation, opinion or option will be much appreciated. 

I have just done something similar with Halifax. I found the process easy and pretty much stress free (Although I did use a mortgage advisor to do it on my behalf) 

The funds were paid into my account shortly after, debts were paid off and no complaints at all. It’s classed as a 2nd mortgage though (It’s still 1 payment, it just has 2 sub accounts, the main initial mortgage and then the secondary to cover the additional borrowing). You don’t need to mess about with ERC’s. 

The issue you have is current mortgage rates are rocketing. (Another 0.5-0.75% increase in the base rate expected tomorrow) so you might find your 2nd mortgage has a higher rate than your personal loans. 

BigBus2017

Spoke to MB today, submitted all the documents to them. A hard search was performed by Barclays and a soft search for affordability this afternoon according to credit Karma. Hoping they agree before the rates go up. 

Zoe02

BigBus2017 said:

Spoke to MB today, submitted all the documents to them. A hard search was performed by Barclays and a soft search for affordability this afternoon according to credit Karma. Hoping they agree before the rates go up. 

Once application is made, the rate is secured even if rates go up tomorrow.