Re-Mortgage/Credit History

AndreGonzalez

Dear Martin/Forum readers,

This is my 1st posting on here so please be gentle .

I am after some advice.

I have just come to the end of a 2.5 yr fixed rate mortgage. I was paying around £850 a month and that has just gone up to around £1100 ( £140K left to pay on mortgage, income of about £35K). I want to re-mortgage and get another fixed rate mortgage deal, however, I currently have a few debts and I think that will make a huge difference.

The debts I have are as follows:
1.Around £4000 worth of debts on two different credit cards
2.I am overdrawn by £1500 with my bank

Does anyone have any advice on how badly I will be affected by these debts?
Am I better off paying off these debts first (which may take some time) and then re-mortgaging?

Any advice would be greatly appreciated.

Regards,
Andre

luckyfool

Andre,

You should chat it over in more detail with a mortgage advisor, but if that is the only credit you have then, depending on the loan to value percentage you need then I cannot see you having too much trouble getting the amount you need whether or not you pay off the debt.

You might have the option of consolidating the credit within your mortgage and you can discuss whether the pro's and cons of doing this as well.

Is your overall credit history good (i.e. have you had any defaults, ccjs, or problems with paying credit on time?).

Luckyfool

AndreGonzalez

Thanks for your posting Luckyfool.

I am looking at a LTV of 60%. Other than the debts mentioned, I have no other debts and have only made a couple of late payments on the credit cards going back about a year or so.

luckyfool

I really don't see you having a problem then Andre. I would look at trying to tie up a deal sooner rather than later though.

AndreGonzalez

Thanks once again for your posting Luckyfool.