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  • FIRST POST
    • Jonathanhill100
    • By Jonathanhill100 14th Mar 18, 8:56 AM
    • 7Posts
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    Jonathanhill100
    Remortgage good equity high unsecured
    • #1
    • 14th Mar 18, 8:56 AM
    Remortgage good equity high unsecured 14th Mar 18 at 8:56 AM
    We tried to remortgage and take additional borrowing (45k) with our current lender Virgin. We were rejected as high risk. We have 65% (this is after the additional borrowing) LTV with property value 400k but 22.5k unsecured card and loan debt (CC all 0% car loan with Santander low apr).


    I was a little shocked but this seems to be due to the debt. We have no CCJ or any marks on credit record it is as far as I can see just due to the high unsecured.


    Could anyone give suggestions for mortgage providers that would be likely to accept us with the amount of debt? I have registered with MS credit site and read suggestions on there re % of borrowing on cards etc and addressed as far as we can. We don't have any cash to pay off the unsecured debt atm.


    Many thanks in advance
Page 1
    • ciderboy2009
    • By ciderboy2009 14th Mar 18, 9:23 AM
    • 406 Posts
    • 368 Thanks
    ciderboy2009
    • #2
    • 14th Mar 18, 9:23 AM
    • #2
    • 14th Mar 18, 9:23 AM
    How much do you earn?

    Lenders have to do affordability checks now so it's likely that you're failing on this.
    • Jonathanhill100
    • By Jonathanhill100 14th Mar 18, 9:31 AM
    • 7 Posts
    • 0 Thanks
    Jonathanhill100
    • #3
    • 14th Mar 18, 9:31 AM
    • #3
    • 14th Mar 18, 9:31 AM
    Hi I earn 55k and wife 15k both FT been with employers +2 years
    • ACG
    • By ACG 14th Mar 18, 9:35 AM
    • 16,816 Posts
    • 8,773 Thanks
    ACG
    • #4
    • 14th Mar 18, 9:35 AM
    • #4
    • 14th Mar 18, 9:35 AM
    The extra borrowing, will that be used to clear the debts?

    In theory there should be lenders, but there is not quite enough information to say for sure. Have you spoken with a broker? Virgin are not really the most flexible when it comes to this sort of thing. You may find (depending on the split of the debt) that with some lenders, it is an outright decline.

    It is probably not a bad idea to speak to a broker if you have not already to avoid any more credit checks and declined applications.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Jonathanhill100
    • By Jonathanhill100 14th Mar 18, 9:41 AM
    • 7 Posts
    • 0 Thanks
    Jonathanhill100
    • #5
    • 14th Mar 18, 9:41 AM
    • #5
    • 14th Mar 18, 9:41 AM
    Thanks 12k of additional borrowing is to pay off debt rest for extension. That would clear credit card debt and leave 10k of Car loan 7k and around 3 k overdrafts.


    I have not spoken to a broker as yet.
    • ACG
    • By ACG 14th Mar 18, 9:59 AM
    • 16,816 Posts
    • 8,773 Thanks
    ACG
    • #6
    • 14th Mar 18, 9:59 AM
    • #6
    • 14th Mar 18, 9:59 AM
    It makes it a little more complicated what you are planning and potentially (depending on your ages and the repayments) a little tight on affordability.

    I think it will be achievable, but it might be a case of doing some sort of balancing act to get it to fit. The flip side is that it might be really easy to place. The devil is in the detail.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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