Porting mortgage with credit card debt

[Richjones19772]

Re: Porting mortgage with credit card debt

The amount of credit I have used only grew after we had to spend way more than anticipated on the house after we bought it, the deposit was gifted to us.

[PlanB]

Re: Porting mortgage with credit card debt

current mortgage 77k only been in it 6 months house worth 88k
new property will be around the same cost, not much available for less.
3% ERC to leave current deal early, I did get a good deal 4.7% fixed for 3 years, scared of ending the deal and not getting as good a deal with another lender or even no deal at all!.
if a lender will lend me extra cash to pay off my cards that would be perfect.

I've had a look at the maths.

You current mortgage is at 88% LTV that probably started as a 85% LTV product which was the maximum NatWest would give you at the time.

The recent Government backed 'Help to Buy' scheme will offer mortgages up to 95% LTV and in some cases 100% LTV. One of those would enable you to increase your borrowing but only by about another £7k. That's not enough to clear all your credit cards but it would lower the monthly repayments if you paid them down.

NatWest are participating in the Help to Buy Scheme but I'm not sure whether they will do this for remortgages (on your current house) but they may consider you for a new mortgage on your next purchase. The snag is the 3% ERC (£2,310) penalty which you would owe if you exit your current mortgage early. However, if you are taking out a new mortgage product with NatWest you should ask them whether they would waive the the ERC under the circumstances. It's possible.

Here's a bit of info on the Help to Buy Scheme although interest rates have been reduced since this article:

http://www.thisismoney.co.uk/money/m...mortgages.html

[PlanB]

Re: Porting mortgage with credit card debt

The amount of credit I have used only grew after we had to spend way more than anticipated on the house after we bought it.

If you've spent money on renovation or refurbishing the house it's possible that it will have increased in value as a direct result. When did you last check it was worth £88k and not more?

According to Zoopla house prices in Sheffield have gone up by 5.89% in the last 12 months and are continuing to rise at the rate of 1.39% per quarter. This link may 'time out' but you can enter your details again to look at price comparisons in your neighbourhood:

http://www.zoopla.co.uk/house-prices/sheffield/

[PlanB]

Re: Porting mortgage with credit card debt

I am just looking for an option,staying put is out of the question so I need to find a way out

Why is staying put out of the question? Is it because of the wear and tear of your long commute or is it because you fear you might default on the credit cards? Your options will depend on what you are trying to achieve and why. No one can force NatWest to port your mortgage or give you a further advance. So if that option is not an option then we have to look at other options.

How old are the credit cards (ie when did you first open the accounts)?

[Richjones19772]

Re: Porting mortgage with credit card debt

Hi guys, thank you for all your advice. Had a good chat with the Mrs and we have decided to stay put and stick it out for a couple of years.This seems like the best option for us and it gives me chance to get my finances in order.So I guess now it seems all I have to worry about is getting this 16k debt cleared !! Cheers guys

[odetter]

Re: Porting mortgage with credit card debt

You may have to take the self flagellatory debt advice offered by another Forum.
Like how to fashion a new pair of shoes out of cardboard boxes or churn your own yoghurt and other such gems.

[PlanB]

Re: Porting mortgage with credit card debt

Had a good chat with the Mrs and we have decided to stay put and stick it out for a couple of years.

That's brilliant news. In my vast experience women are always right about these things I'm a woman obviously.

Why not post up brief details of your credit cards and then maybe consider Odetter's excellent suggestion to look at moving them to any 0% interest balance transfer offers which are on the market. It's called being a card tart but it works.

[odetter]

Re: Porting mortgage with credit card debt

Yes that is good news.
I blundered badly with a "consolidation loan" and most other people's experiences haven't been very positive.
Hang on in there and get rid of those wretched cards.
Consult the "snowball calculator" which may help you to prioritise your debts.
FGS don't borrow anymore!!
It's a bit dismal but you will get there!
Good Luck.