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  1. #1

    If declined twice for debt consolidation what next?

    Hi Just wanted to ask what the next options would be if declined twice for debt consolidation remortgage - (agreed in principle 2 hard credit searches carried out applied via broker) haven't applied to our current lender yet as it was looking cheaper to remortgage elsewhere - My questions are how long before we could apply again in view of the 2 hard searches and also should we try our current lender next or try a specialist lender - We were told on initial applications there was plenty of income to play with but we think because the debt we want to consolidate is equal to our annual salary we are thinking that is going against us - but we are unable to reduce this by much. We have read up on second charge mortgages which when doing a search on uswitch are coming up cheaper per month than what our current lender quoted to us for the additional borrowing - however we suspect brokerage charges for these are pretty high? In view of the fact we are unable to reduce our unsecured debt by much without consolidating what are our options? We have thought long and hard and have decided that consolidation is the best thing for us but having been declined once and awaiting decision on a second application it would be really useful to have an idea of what our options would then be?

  2. #2
    Why were you declined? Did you fit criteria and affordability?

    Could you look at a secured loan for the debt?

  3. #3
    That's only part of the underwriting process. Lenders also look closely at the debt accumulated.

  4. #4
    Hi thanks for replaying os quickly. We are awaiting decision on 2nd application but the first application was declined due to high debt to income ratio (although all of the unsecured debt we have was being consolidated onto the mortgage). Second application is in with a lender who "looks at individuals a bit differently. Our broker extended the term of the loan this time we are 4 weeks in and still awaiting response as they process everything manually. I guess we are super worried as we have been turned down once and if we are turned down again then that will mean 2 hard searches on our file - does this mean we cannot apply to anyone else for a while? To give an idea of numbers Salaries per p60s this year total 53k. Current mortgage o/s 139, property valued at 250 Additional borrowing required to clear loan and credit cards 50k bringing LTV to 78% I have 1 late payment on my file from last march - all debt payments and mortgage payments have always been paid on time bar that 1 2 days late.


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