Bank of Scotland Mortgages

- M
- Mark
  
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posted
19 years ago

Mon, Jan 24, 2005 6:18 PM

Hi,

I've had a self-certified mortgage with the bank of Scotland for around

3 years now, As house prices have increased in this time, I am wanting to request Extra funds for home improvements and also to pay another high interest loan I have off.

Does anyone know how the Self Cert scoring works, I phoned them today and asked them but they say rather than 3.5 times the salary or whatever, the decision is based on affordability?

If on the application forms, you say "debt consolidation", is this considered a bad thing, because you have debt already, or a good thing, as you are going to be paying that debt off...

My other option is to re-mortgage, but im not too keen on all of the hassle, does anyone have any advice on re-mortgaging, and how my property value can be attained? Also how the credit scoring works?

Thanks

Mark

- R
- Richard Faulkner
  
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posted
19 years ago

Mon, Jan 24, 2005 8:54 PM

In message , Mark writes

All I do is ask them for the form, complete it with the valuation I think/want, and say it is for property improvements, (which it always is), pay for the new valuation, and bingo!

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- Neaco
  
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posted
19 years ago

Mon, Jan 24, 2005 11:03 PM

Referring to this specific point - no you're not paying the debt off - you're just replacing one debt with another one - the debt remains. The issue is about transference of risk and whether the company you want to transfer the debt to, wants to take on that risk based on your ability (or perhaps inability) to pay.

And it's a fact that most people who consolidate their debts will in the long term end up paying a lot more in interest payments. There are various reasons for this, the most common being that people want to pay out less every month. The only really effective way of doing that is by extending the repayment term, which means over time, you will probably end up paying more interest - unless of course, you can manage to transfer the debt from one 0% APR to another.