Remortgaging to pay off debt

9
Found 17th Aug 2017Edited by:"Maxwell020117"
Hi there
A question on mortgages and further lending to eradicate short term debt.
I know the advantages and disadvantages of increased borrowing on a mortgage, but I wondered are banks likely to lend further on mortgages for this purpose. I would e looking to borrow 80%LTV.
If so, then do they consider the fact that you will pay off these debts when looking at the monthly outgoings and affordability (so basically that you would have no credit card payments each month).

I don't want to apply as this could affect my credit rating (which is rated Excellent)

Thanks in advace
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9 Comments
I do not see this as a problem. Suggest you run it by a broker first and see what he/she thinks before applying.
don't say you want to remortgage to pay off debts as that may result in a refusal. say that you want the money to make improvements. they may ask for details of the improvements but they won't be checking up afterwards that you have carried it out
mutley11 h, 53 m ago

don't say you want to remortgage to pay off debts as that may result in a …don't say you want to remortgage to pay off debts as that may result in a refusal. say that you want the money to make improvements. they may ask for details of the improvements but they won't be checking up afterwards that you have carried it out


Terrible advice.

How would the OP explain the existing debt/monthly debt payments that will end...?
sydney8712 h, 54 m ago

I do not see this as a problem. Suggest you run it by a broker first and …I do not see this as a problem. Suggest you run it by a broker first and see what he/she thinks before applying.


This.

You need to ensure the message is put across that the existing debt(s) will be paid, thus your outgoings will decrease.
The answer is yes you can but be upfront about it.
You will decrease your outgoings and they will take this into consideration in checking affordability
LTV will depend on the lender's criteria
If you do consolidate, you may reduce your outgoings and pay a lower interest rate than on unsecured borrowing but bear in mind you will be borrowing over a longer period so it isn't quite as cheap as it first appears.
Don't be tempted out more credit once you have consolidated, you can get into so much trouble that way
Try and find a lender which allows overpayments so you can pay the debt down sooner if you have a little extra cash
Look into offset mortgages as they can be very flexible.
As you have a history of credit card debt , and your plan is laudable , the mortgage lender may well think that you may use the remortgage to pay off the credit cards -then max them out again . Hence the affordability may not be taken into account .
Edited by: "rogparki" 17th Aug 2017
Remortgaging is what caused the credit crunch in 2007. Lots of people did it so they could buy fancy cars etc... then property plummeted overnight. You should be paying off your home. At the moment your home is a liability!
Original Poster
As you have a history of credit card debt , and your plan is laudable , the mortgage lender may well think that you may use the remortgage to pay off the credit cards -then max them out again . Hence the affordability may not be taken into account .

Yes I understand that totally- my cards are no where near maxed out, due to very unfortunate circumstances I have found myself having to re-assess my finances, I'm just trying to be sensible and address things before they become an issue.
mad_design_man21 h, 3 m ago

Remortgaging is what caused the credit crunch in 2007. Lots of people did …Remortgaging is what caused the credit crunch in 2007. Lots of people did it so they could buy fancy cars etc... then property plummeted overnight. You should be paying off your home. At the moment your home is a liability!

Did I have a different version of 2007 to you then
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