Advice needed regarding refinancing to clear outstanding debt?

Our house has been recently valued by three agents between 625,000 and 650,000. We owe 198,000 on the mortgage. We have never missed a payment or requested interest only / payment holiday. We have a perfect credit rating in relation to it.

The problem is that owing to difficulties with my business during the recession, we have short term debt of up to 80,000. My husband wants to put the house on the market to clear the debts as its driving him mad having these hanging over our heads. For the sake of 78,000 I think its crazy to sell. The area suits us for the schools and also my mum lives with us and the stress of it is really upsetting her (and me, and the kids, and the dog!). I wanted to see if we could draw down funds considering the sizeable equity we have but don t know of any bank who is re-financing. We can t ask our own bank because it is IRBC.

Does anyone know if there is any bank out there who is doing this?

78k must be a nightmare to service. I wouldn't rule out getting it refinanced. That your mortgage is currently with IBRC shouldn't be an issue.

You'd have a lot of equity still. If not, I'd seriously consider your husband's idea.

Jalu said:

I wanted to see if we could draw down funds considering the sizeable equity we have but don t know of any bank who is re-financing.

Click to expand...

What any lender will look at is your ability to repay over the term of the loan.

Having a low loan to value and a perfect repayment history is a definite plus, but on its own will not get you a mortgage with another lender.

A lot more information might get a more accurate response from others here familiar with these issues.

I think your first step is to see if a broker things it's possible.

Can you easily afford a new mortgage, as it looks to me like you're going to have to move bank?