Hello, I'm after some information and advice on behalf of my daughter and her partner. They currently have 3 loans they are paying off - mortgage, personal loan and car loan. They would like to consolidate and have applied, however they were rejected even though his parents were on the application as guarantors. The reason they were given is that the value of the consolidated loan is more than the value of the house, (about $5k). The value of the property has decreased since they purchased it. They also believe that his parents do not have a good credit rating as they have a lot of personal debt in the form of credit cards.
They are on a combined income of $120K gross and pay $1800 per fortnight combined on the loans (combined value of $385k) which leaves them very little cash once living expenses and insurances are factored in.
My question is, given their incomes and that they have both been in their respective full-time jobs long-term, do they have any chance of a bank accepting their application or will they have to wait till they build some equity and/or the market turns and the value of the house increases? Another option that has been offered to them is my sister and her husband going garantor for them. They own a property valued at over $1,000,000 with less than $50,000 owing on the mortgage. My BIL is a company director, he earns a 6 figure salary and they have an excellent credit rating.
TIA for any responses.
They are on a combined income of $120K gross and pay $1800 per fortnight combined on the loans (combined value of $385k) which leaves them very little cash once living expenses and insurances are factored in.
My question is, given their incomes and that they have both been in their respective full-time jobs long-term, do they have any chance of a bank accepting their application or will they have to wait till they build some equity and/or the market turns and the value of the house increases? Another option that has been offered to them is my sister and her husband going garantor for them. They own a property valued at over $1,000,000 with less than $50,000 owing on the mortgage. My BIL is a company director, he earns a 6 figure salary and they have an excellent credit rating.
TIA for any responses.
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