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Halifax remortgage - debt consolidation - anyone done this?

(8 Posts)
UpsyDaisyluvsIgglePiggle Sat 08-Apr-17 09:55:12

Hi

DH and I have just gone through the application to consolidate into our mortgage. It looks like it's a second secured loan against the property over 10 years which isn't a problem. Due to the loan to value ratio being quite high we have to have our house re-valued by Halifax. I've a few questions over this and wonder if anyone has gone through this and can offer any advice?

Firstly, if we are paying off debts with the funds, do the funds get transferred to the debt companies by Halifax to pay them off on completion? Or do they send DH and I the funds to pay off the debts ourselves?

Second, our house is on the market at a slightly higher value than Halifax have the house as which was updated to that 10 months ago. Are the valuers likely to find it at our higher value or do they like to stick with their present value?

Finally, are all the credit checks done before the valuers are sent out? Has anyone gone through the process, been accepted, had theirs re-valued, then been declined again nothing to do with the value?

Thanks in advance for any replies. I understand we can ring Halifax to ask but I have done this multiple times over the last 3 days and it takes ages to get through....smile

bruffin Sat 08-Apr-17 10:02:08

We did similar with hsbc. The biggest problem we had was the mortgage was joint and the credit card was dh name ( although i had a partners card) and i had to take legal advice becausr it was seen as taking on his debt even though i spent as much on the card as he did. The problem was finding a solicitor who would do the job and wasnt going to charge a fortune. I ended up paying about £200 even though hsbc said it would only cost £50.

UpsyDaisyluvsIgglePiggle Sat 08-Apr-17 12:11:57

Thanks for replying. The debt is over 10 agreements/credit cards/overdrafts in either his name, my name or both of our names. Halifax didn't seem too bothered about whose name it was in. Maybe it was because I made it clear he's a spender and I give in to him lol.

bruffin Sat 08-Apr-17 12:18:37

We did know about this until we got to the solicitor stage. Its to do with a case called Ettridge.

UpsyDaisyluvsIgglePiggle Sat 08-Apr-17 18:28:23

Thanks for your help smile Hope we don't have the same with Halifax then. They've only told me it'd cost for the valuation.

Bearbehind Sat 08-Apr-17 18:59:28

OP, your post is a little confusing as you first said you were remortgaging but then said 'our house is on the market at a slightly higher value than Halifax have the house'

Are you selling this property and buying another or just remortgaging the current one?

Either way, lenders are always going to err on the side of caution when refinancing debt.

If you need your valuation to be significantly higher than their own valuation index I'd be preparing for the worst and exploring alternatives. That way, if it does work out, great, if it doesn't you have a plan B.

UpsyDaisyluvsIgglePiggle Mon 10-Apr-17 20:19:23

Thanks for replying, sorry been busy.

Yes our house was on the market until last week when we decided we weren't moving and decided to use the equity in our house instead to pay off some debts. Our original plan was to sell the house with the £35k equity and use it most of it as a deposit on the new house and also to pay off some debts with what would be left after taking the deposit money out of it. We are now not selling as my DH says he's struggling with anxiety of moving and really loves where we live. I just want a bigger house as it's a small bungalow but it's in a lovely area.

We've found today that the valuation need only be what Halifax have it currently on their system. We've got it slightly more but as long as they get to their own valuation all should be ok.

I have a plan B now after spending today looking at paying the debt off without the remortgage. It would work however not be as desirable. I always assume the worst.

user1492767068 Fri 21-Apr-17 10:51:59

Even we had gone through such a situation. My husband was having multiple loans. It was getting really difficult for us. By the time all the monthly interests were paid off, we had very less amount left for the other household expenses. That is when we were told to go for debt consolidation. And even though there is still monthly payment, we just have to worry about one loan and its interest. So I think this is much better. There is some information giving in this regarding debt ocnsolidation, www.mortgagesmortgages.ca/mortgage-options/debt-consolidation/. Hope this helps.
And yes in this case, you should always expect the worst.

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