The Society will not consider debt consolidation for a habitual consolidator using finance to fund a lifestyle that their income cannot support.
Where the debt consolidation exercise is to repay credit card debt it would be expected that all accounts will be cleared with the additional funds. Partial repayment of credit cards will not be considered.
A detailed explanation from the applicant(s) is required to establish why the debts occurred and clear details of the debts being repaid.
The outstanding debt should be viewed relative to the applicant’s income and while there is not a defined ratio, where there is any concern, referral should be made to the mortgage underwriters.