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Original poster

Debts and remortgage

11 replies

mummy2boys53 · 24/05/2020 22:20

So, it’s comes to light today that my husband has ran up several thousand pounds worth of debt. I had a feeling something was happening but not the extent it is. We are in the process of re-mortgaging our house and looking to release some equity to build an extension. Both of our credit scores are excellent but I’m so worried we are not going to be able to get the remortgage we want now due to debts. We are happy to extend our mortgage term to make the payments more affordable and luckily the interest rates are lower then what we are currently fixed at so hoping it’s not completely out of the question. Now it’s all out in the open we can tackle the debts!! Please don’t say I should be leaving him/game over etc etc as that isn’t going to happen. I love him and it’s done so now it’s about taking steps to move forward and get it sorted!! Just worried about the re-mortgage now!!

OP posts:
Mum4Fergus · 24/05/2020 23:53

Your credit ratings are irrelevant these days...everything comes down to affordability. The money needed to service the debt will be taken into account by any lender and will reduce the amount they are prepared to lend.

Notyetthere · 25/05/2020 03:45

This is where a broker comes into their own. We too remortgaged with a credit card debt so spoke to a broker who knew which lenders would pass us for affordability for the amount we wanted.

Original poster
mummy2boys53 · 25/05/2020 07:07

Yes we are going through a broker so that’s a good thing then I guess. I have looked at the affordability checks online and we can easily afford to pay each month. The good things is that as the interest rates are so low the monthly payments are cheaper so fingers crossed it won’t be an issue. I’m really upset/angry about it and frustrated that he didn’t talk to me sooner but it’s done now isn’t it so have to move on and get things on track. I have now taken all the credit cards off him which he willingly gave up and we are combing our finances so there can be no secrets.

OP posts:
Toomanycats99 · 25/05/2020 07:09

Has he said what it's for and taken steps for it not to happen again? Joining finances means nothing he could easily take out another card in his name and start it up again.

Rebelwithallthecause · 25/05/2020 07:12

Agree it’s mainly affordability

So if you were borrowing the max LTV with releasing equity you would just have to reduce that by the amount the debt is usually

If you have wiggle room on your LTV then a few thousand on credit card won’t make much of a difference

If he’s taken out £10k loan that would be different

Original poster
mummy2boys53 · 25/05/2020 08:30

Yes he has said what it’s for. With combined finances he can’t get away with another card as I will see this money coming from our account!

OP posts:
Original poster
mummy2boys53 · 27/05/2020 20:40

@Notyetthere

This is where a broker comes into their own. We too remortgaged with a credit card debt so spoke to a broker who knew which lenders would pass us for affordability for the amount we wanted.
Did you manage to remortgage with more money or just straight forward re-mortgage? Also, are we talking a lot of debt or just a few thousand?
OP posts:
Notyetthere · 27/05/2020 21:52

@mummy2boys53 We remortgaged and borrowed more. It wasn't a small amount; about 10% of the value of the house.

The first time our mortgage deal wasn't about to expire, we looked at what our current bank was offering to switch. We then took that deal to London and Countru brokers and asked them to beat it. They couldn't. We were leaving a very high interest rate, switching to a very low one thanks to prices rises in our area and we could switch 3 months early saving us £1000. We stayed which meant no credit checks or anything like that. Switched in about 4 clicks online. Very quick and easy.

However, the 2nd time round, we wanted to do some work to the house. We had a baby and one of us had gone part time so a small drop in income. We tried our bank's affordability calculator online and it showed that we couldn't borrow the extra we wanted so we went back to L&C who found us a bank whose affordability we passed. Banks are stricter but they all have different ways of how they score affordability.

Notyetthere · 27/05/2020 21:53

That should have said.....mortgage deal was about to....

Original poster
mummy2boys53 · 27/05/2020 22:14

That’s great. Pleased you managed to get sorted. I meant was your credit card debt high?

OP posts:
Notyetthere · 28/05/2020 00:37

Aah gotcha. The credit card debt was about 5k.

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