are we effed trying to remortgage?

[Matchingcollarandcuffs]

We desperately need to remortgage as currently need to do a loft extension as boy/girl teens share a room.

We want toremortgage to 68% LTV, it's still under 3 x joint salary.

We want to use some of the money to pay off credit cards.

Issue is they're all maxed out, and they want statements for all off them.

Whilst it looks bad on paper paying our debts off would free up more than £1.8k a month, with new mortgage figure that's still more than £1k more disposable income after mortgage and essentials paid. We'd have over £2k 'spare'

We're stuffed aren't we? Need to spend next 6 or so months living way under or means and start paying some credit off. .

Op, you can’t really have thought thay you pay 900 for 117 k mortgage and it would only be 500 quid more for a 290 k one? If your numbers are right, and I assume it’s due to term, then it’s 2400 a month on the new mortgage.

as the debt won’t be paid off prior to the mortgage being approved, they will take your repayments into account in thr affordibility check, so the 1800 a month. Even if you pay it after, they look at affordability at the point of offer.

this would bring your monthly debt repayments to close to 4 grand for mortgage assessment purchases and you may fail the affordibility checks. Particularly as that debt is due primarily to overspending.

if you do get it, you would indeed be 300 a month better off, but you need to check all the terms of your credit cards and check the actual costs to settle and close.

I mean this gently but maybe you both need to see a financial advisor, someone who can help you.

This is true. The weekend away isn't actually free - that refund and the arcade money could have been banked.

caringcarer has given some really good advice above - it's the small amounts which add up to large amounts and really make a difference.

I got a Natwest mortgage with £120k of credit card debt. It was a requirement that we settled the debt from the additional mortgage amount. I think it was actually lent as 2 different amounts as we have 2 different mortgage accounts (same rate and 1 payment)

I know we should have but I’m about to have an op that is going to leave me housebound for weeks/months, we’ve had to cancel our last 5 holidays and for these two nights at least all of the kids have their own bedrooms. It was a price I was willing to pay tbh for their pleasure and my sanity

I’ve already adjusted the household budget for the month to accommodate

Still not getting it. So the holiday refund AND the adjustment to the household budget could BOTH have gone into the debit. Keep spending, because you think you deserve it, and you are heading to bankruptcy and/or even losing your home. You need to stop spending and get your debt sorted.

Op
Roughly your salary is around £5,553 per month
1800 debt leaves £3353 per month.
Mortgage £900
= £ 2453 per month.
Do you have other massive outgoings?
Would it be worth posting a list so we can chop things for you?

Also I mentioned Insurance might cover the damage to your kitchen cabinets?

Because you are hooked on the idea that credit card debt is bad but mortgage debt or car debt etc are not

Credit card debt can be a very cheap way to borrow money

were clear about £5900 a month and have about £2k ‘spare’ after paying off debts and bills, no more cutting to be done until Sky and gym contracts are up (although once I have my op my gym will be frozen which will be £100 a month)

we’ve just had big things every month, mainly related to my health as I have private healthcare but it’s not covering all my costs (ie cab home from hospital will be £70+ as its at London Bridge and I live in Surrey and DH can’t pick me up. I’ve been diagnosed and having surgery before NHS referral accepted for consult at hospital. Worth it.

We have just been taking the ‘easy’ way out as often I’m too tired to cook and DH defaults to take away

it’s our day to day spending that’s done this, and I need to get DH on board before I go into hospital as he’ll be responsible for shopping/cooking for weeks, I’m not knocking him but it’s much easier if there’sa plan.

Also need to go through statements to work it exactly where it’s all going/gone.

Is that after food, petrol Op?
With tight budgeting you could live on 1K and chuck 12K to pay off debt in a year.
Once you pay off the first card you snowball the payments for that onto the next.

It’s petrol but not food, but an budgeting £1k for food/household/clothes and then pay an extra £1k on the debts. Should clear 3 cards 6 months doing this

Brilliant!

Ps chop up the cards so your DH cant run them up again.

Thank you all for the straight talking though. I needed it.

We have just been taking the ‘easy’ way out as often I’m too tired to cook and DH defaults to take away

Maybe try a middle ground for those weeks you’re out of action after your op - sort out a HelloFresh or other meal-kit service. Teens can then take a turn cooking too and all the thinking & shopping is already done.

Bastard rats. You have my sympathy, OP!

Wow £6k a month and you're up to your eyeballs in debt?! That's insane! You really need to tighten your purse strings, I imagine 90% of your monthly spend is unnecessary!
Clothes- use charity shops if you must have new, sell old/outgrown ones. Just have a capsule wardrobe, you don't need new clothes every month, especially if your kids are at school, surely they're in uniform most of the time! Food, shop cheaper.
Depending on your & your children's needs if any are physical there may be grants you can get for building works.