Affordability issue on mortgate - advuce please

iwantbricksandmortar

Hello there.....I am in the process of a RTB, property valued at 55K - mortgage applied for on £41K - to consolidate debts. Actual RTB is 29K -broker has just called to say that the Alliance and Leicester will only proceed with the mortgage providing I pay off the 9K Credit Card - apparently down to affordability and I don't have have 9K!!! - he is hesitant to apply to another lender in case they have the same criteria on affordability and this affects my credit score.......Any ideas

minimike2

Most lenders will not allow you to consolidate debts on a RTB. They usually allow some extra funds as long as its used for home improvements.

You will probably find that any lender willing to allow the consolidation will be a non-conforming type lender and charge a much higher rate and higher fees.

Your broker should be best positioned to advise the best way forward as he knows your full circumstances better than we do.

iwantbricksandmortar

Hi thanks lots for your reply - as far as I know it was put though for improvements - I also asked if we were to reduce the mortgage from 41K to 35K would this make any difference - he reckons it won't make any difference - the A & L will still want the 9K paid off

silvercar

So you need to pay off the 9k credit card bill with the mortgage and keep some of the debts that you were intending to consolidate going.

Or is this 9k credit card bill part of the (41-29=) 12k debt you were consolidating.

In which case you need to borrow from elsewhere (family?) to pay that off and repay as soon as the mortgage has been drawn down.

iwantbricksandmortar

Hi there...what a great idea...have contacted family...raised the 9K so all should be well....thanks soooooo much