Re Mortgage to re consolidate debt - Hold 95%+ equity.
Discussion
Hello,
I hope you are well. This is a query on behalf of my parents. They own a £180k property with circa £2k remaining on the mortgage, pretty much out right. They have came into a spot of trouble due to family circumstances and my mother has approx 15k debt which she would like to wipe (Credit Cards).
We were thinking if it is straight forward to remortgage the home for 20k and assuming as the home is pretty much out right this money would be ONLY used to consolidate her existing debt. Reason being she is spending upwards of £500 a month on credit cards, however understand a mortgage would be a fraction of that making her have no financial worries at all on an ongoing basis. She also has the full NHS pension coming in 3 years (35 years of service)... so no real financial issue long term however we have a very short term cash flow issue.
Can this be done? Current mortgage is with Alliance & Leicester? - when you re mortgage for debt like in this instance do the lenders agree that if she was spending £500-600 a month on credit cards and a re mortgage when we own 95%+ of the home will clear these negative credit cards - is this possible? She is aged 52. Her credit rating seems adverse (650) due to these credit cards being max'd out.
Thank you and I appreciate your help in advance!
I hope you are well. This is a query on behalf of my parents. They own a £180k property with circa £2k remaining on the mortgage, pretty much out right. They have came into a spot of trouble due to family circumstances and my mother has approx 15k debt which she would like to wipe (Credit Cards).
We were thinking if it is straight forward to remortgage the home for 20k and assuming as the home is pretty much out right this money would be ONLY used to consolidate her existing debt. Reason being she is spending upwards of £500 a month on credit cards, however understand a mortgage would be a fraction of that making her have no financial worries at all on an ongoing basis. She also has the full NHS pension coming in 3 years (35 years of service)... so no real financial issue long term however we have a very short term cash flow issue.
Can this be done? Current mortgage is with Alliance & Leicester? - when you re mortgage for debt like in this instance do the lenders agree that if she was spending £500-600 a month on credit cards and a re mortgage when we own 95%+ of the home will clear these negative credit cards - is this possible? She is aged 52. Her credit rating seems adverse (650) due to these credit cards being max'd out.
Thank you and I appreciate your help in advance!
If you find the standard process via the high street banks becomes a mess, you could think about a secured loan. They're only available on property with an existing mortgage and are effectively a second charge. They're a bit costlier than standard mortgages but the process is easy. Usually handled via a broker who earns a commission from the lender for placing it with them.
Here's one:
http://www.atlasfinancescotland.co.uk
I know them well having co-directed the same type of business with the owner some years ago. If calling ask for the boss, Danny (who may not be there as he's semi- retired now) or Rosie (his daughter). They also work via intermediaries if you've an FA you prefer to trust.
Here's one:
http://www.atlasfinancescotland.co.uk
I know them well having co-directed the same type of business with the owner some years ago. If calling ask for the boss, Danny (who may not be there as he's semi- retired now) or Rosie (his daughter). They also work via intermediaries if you've an FA you prefer to trust.
Edited by drainbrain on Saturday 5th November 17:56
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