Refinance Mortgage for RemodelMortgage refinancing for conversion
we are in a pretty complex mortgage/debt hen and eggs scene. As we purchased it, we took out a mortgage for more than we needed, so we actually used a portion of the old house's own capital to cover the renovation costs, and we also collected every penny we saved to go to work.
Our mortgage interest is really good (offset interest only 1.99%), due to the fact that we stay below an LTV of 65%, which limits the amount we could lend. After talking to the mortgage bank, we were told to do the work first, then have the property upgraded and then resume the mortgage.
Thus we have concluded the work with the saving we had and a mix of private credits and credits card - mostly 0% account transfers, but we also have accounts on interest-bearing "everyday cards". At last we have concluded all our restructuring work and are beginning to deal with our funding.
Last night I phoned the mortgage bank - and you guess - and declined to give us more mortgage because our own fault makes that look inexorable. You have a limit of £40k if you have more debt than this they decline out to do a debts consolidating mortgage, regardless of how the debt did get lifted and regardless of what this is what they told us to do in the first place (I have no evidence, it was about telephone conversations).
So now we are let with a very low cost mortgage and a relatively costly amount of face-to-face indebtedness - around £100k overall. I and my man are fortunate that we have well-paid workplaces and we can manage this indebtedness and, over the years, lower the debit balances, but I shudder at the thought of 16% or so on the few thousand on interest-bearing card, and at the thought that by the moment we close these some of our 0% transactions, there will be an end to it, so that we will return to the point where our payment is mainly interest and does not make much progress in the city.
Even if we assumed that the "real" value was 10% below the broker value, we would have an LTV of less than 50%, even if we would get a mortgage for the full amount of our debts. None of us has ever failed or been too tardy with any payout, we have no C. C. Js etc and we are generally very reasonable with cash - it is not as if we live beyond our means and we were very cautious when we took this indebtedness that we could afford to make the months even if we had not managed to make them pay back.
Is there a mortgage bank that considers the reason for the creation of the debts and not just the amount of the debts? What level of debt should we try to remortgage again - is it necessary for us to have finished off £60k of indebtedness and be down to the £40k limit our lending has, or do other lending institutions have different limits? What kind of credit is it?
Would it be more reasonable for creditors if we had credits instead of credits before? I am loathsome to be paying off the 0% deal before making extra repayments on the 7% mortgage, but if it accelerates the amount of pecuniary gain we can move the whole mortgage to 2% or 3% mortgage, it would be better to do that.
Is any mortgage bank good at evaluating individual debts on the assumption that the mortgage will be used to pay off those debts? Most of our issue, I think, is that the evaluation procedure is based on the assumption that we want to raise more funds overall, but we actually want to refinance the debts we have and exchange them between them.
It is clear that we had no accounts until the beginning of the renovations and all of a sudden we accumulated a great deal, and now we have a steady and gradually decreasing equilibrium. While we can manage the present state of affairs if we have to, if I can lower our interest charges we can pay back the principal much more quickly.