Loan after getting a Mortgage - Consolidate Debt

tuga608 · 18 September 2019 at 12:47PM

Hello all and thank you for taking the time to give some help

So me and my partner just bought a house, we will only move in in about 2 months time as its a new build, the cost is £285k

my salary as self employed is £42k however on paper for finance purposes only shows around 24k

me partner is full time 19K
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this is our currently debt
money I owe to family - £11.000
HSBC Credit card - £4348 / Limit £4500 - 0% Interest for another 22 months
MBNA Credit Card - £3410 / Limit £3500 - 37.97% P/A
Aqua Credit Card - £5077 / Limit £6800 - (waiting to find out)

On top of all of this, once I enter the new house in November I still have to find money for this

House Extras (left to pay to enter the house) - £4500
Dentist - £2500

All together is a total of - £30.835
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my question or the solution I'm looking at is..

The mortgage still doesn't show on our credit reports since we have not moved in, however once we move in, I'm planning on trying to take a loan to consolidate debt of 25K or something like that to pay over 3 to 5 years, whatever is more beneficial for us.

Her credit score is fair and mine is fair almost poor since most things are in my name (car, credit cards, etc)

how likely am I to actually be approved for a loan once the mortgage/house is actually showing on paper ?

if this fails / not possible, what do you advise on how to proceed ?

As you can tell I'm quite in a very deep situation where I don't even know where to bury my head!

Thank you in advance for your help

[Deleted User] · 18 September 2019 at 12:52PM

Not enough information to say. Your scores are made up so don't give any guide to your changes.

What appears on your credit files? What's your track record of managing credit? How much are you currently throwing at the debt - and what are the rates?

The new mortgage and change of address will make things more difficult for a while.

Your incomes are also too low to get the sort of loan you're talking about, so you;ll need to aim more modestly. Have you consider BT cards?

tuga608 · 18 September 2019 at 3:38PM

will edit the original post now and add real values, thank you for the quick response

tuga608 · 18 September 2019 at 3:49PM

Not sure whats on my credit files but there might be 1 or 2 defaults over 2/3 years ago, since then its been clear.

Im currently paying my family £1000 a month, Aqua £150 and the other £100.

What do you mean BT Cards / I never heard of that, and how can that help ?

Thank You

MallyGirl · 18 September 2019 at 4:06PM

I don't think you earn enough to borrow more - to be honest I am surprised that you have got approved for what you have. The family loan is helping to mask your debt exposure by being off the books.
Have you had the dental treatment - if not then that probably needs to wait unless they are offering a 0% installment plan. Probably even then as it still needs to be paid.
Do you have the £4500 move in fee saved? If not then this is probably going to be your biggest challenge.
Forget consolidating - that is not going to happen.
You might - but I suspect not - be able to get a 0% balance transfer card to help with the horrendous interest on MBNA.
I suggest filling in a proper SOA to see if there is anything in there that could be reduced.

tuga608 · 18 September 2019 at 4:11PM

Have you had the dental treatment - if not then that probably needs to wait unless they are offering a 0% installment plan. Probably even then as it still needs to be paid.

Yes, its 3 appointments to add a implant, I already had the 1st and paid the first of 3 installments, the next one is in October and its £1700 then in December for the remaining £800. so cant really escape that now.

Do you have the £4500 move in fee saved? If not then this is probably going to be your biggest challenge.

No, for that I will have to - use money from my business account + use my partners credit card (aqua) limited to £1700, but since its a new card is 0% interest for around the next 20 months.

Forget consolidating - that is not going to happen.

that's unfortunate as it would be so much easier even if it was over 1 year or 6 years.

You might - but I suspect not - be able to get a 0% balance transfer card to help with the horrendous interest on MBNA.
I suggest filling in a proper SOA to see if there is anything in there that could be reduced.

I will look into that

MallyGirl · 18 September 2019 at 4:19PM

tuga608 wrote: »

No, for that I will have to - use money from my business account + use my partners credit card (aqua) limited to £1700, but since its a new card is 0% interest for around the next 20 months.

How are you planning to get the money from the aqua card - do they accept payment by credit card?

foxy-stoat · 18 September 2019 at 4:31PM

How did you manage to secure a mortgage for a £285,000 house on that income with that amount of debt?

I assume you didn't tell them your true debt levels and not sure what you mean you earn £42,000 but on paper for financial purposes its £24,000.

tuga608 · 18 September 2019 at 4:48PM

How did you manage to secure a mortgage for a £285,000 house on that income with that amount of debt?

My daily rate is high and my accountant which was also my financial mortgage advisory somehow can use my daily rate as if it was a salary, and on top of that the help to buy schedule and my partners wage, managed to get us there.

I assume you didn't tell them your true debt levels and not sure what you mean you earn £42,000 but on paper for financial purposes its £24,000.

the debt has only been "pilling" from the moment i had to leave 12.500 deposit and then had to switch cars which was another £5000.
and on paper / credit report what appears as my company "profit" it appears 24k, not sure how it works but i think it only shows the dividends after paying all my expenses

Not sure how those questions are relevant for the post but anyhow.

MEM62 · 18 September 2019 at 4:54PM

tuga608 wrote: »

Im currently paying my family £1000 a month

You need to scrap that and throw the £1000 a month at your credit cards. That will bring down the amount of debt shown on your credit history, which will result in you being viewed more favourably by potential lenders.

To be honest with that level of debt and your incomes I am struggling to see how you got the mortgage approved. On the face of it, your financial position looks very precarious I would be very uncomfortable in your shoes. Your house of cards is at risk of collapsing.

foxy-stoat · 18 September 2019 at 5:07PM

tuga608 wrote: »

Not sure how those questions are relevant for the post but anyhow.

They aren't relevant, your answer was in post #2.

Loan after getting a Mortgage - Consolidate Debt

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