Defaults and impact on mortgage application

Yellowboots44

Hi,
.I think I have monumentally screwed up.
.I took my mortgage out in 2010 at 90% LTV.
.I was advised that I couldn't add to the mortgage for an extension as the LTV was too high.
.A better way to do it was to get the work done via credit then add the loans to the mortgage further down the line. 
. I had the work done and now two years later, the house has increased in value by nearly 100k.
. I called the mortgage company to discuss transferring the credit used to pay for the extension onto the mortgage.
. The company told me that it was an affordability issue because the system calculates what I'm paying now ON TOP of the new mortgage loan rather than replacing/consolidating it. 
. I am struggling with the huge interest rates on the loan/cards which is my own stupid fault (I can't berate myself any harder than anyone else can!) 
. If I enter an IVA (which would mean defaults on my file) how will this impact my ability to remortgage in 2.5 years? 

kingstreet

Many lenders don't tax affordability with credit commitments which will be repaid. A remortgage would be a better option than a further advance, but watch out for ERCs on current mortgage.

The other option is a secured loan until the ERCs end.

Yellowboots44

. I forgot to add I was turned down for secured consolidation loan.
. ERC on current mortgage is high and I would have a much higher interest rate on my current fixed rate

ACG

I think on the high street only Santander and Platform/Co-op count the debt even if it is being paid off, so I assume you are with one of those? 

Some lenders will ignore the debt being added but if you have ERCs to pay I understand why you might want to avoid that route. 

Have you spoken to a broker? 
It might be cheaper to switch lenders and take the hit on the ERCs. There are also other secured loan lenders. 

Im not a debt advisor, but think carefully about an IVA it is in essence the same as bankruptcy. You might be better with a DMP or just defaulting on the payments and setting up payment plans with the creditors directly. But maybe speak to a mortgage broker and see what your options are.