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  • FIRST POST
    • darlo1883
    • By darlo1883 4th Dec 17, 2:37 PM
    • 1Posts
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    darlo1883
    Help Needed
    • #1
    • 4th Dec 17, 2:37 PM
    Help Needed 4th Dec 17 at 2:37 PM
    i have a loan which i pay £258 per month a real drain on my finances. I'm looking to borrow more /remortgage to get the 10k i need to pay off loan and reduce my monthly outgoings by about £200 a month. Good idea?? Tried a few months ago and my current lender refused my application due to my wife having used a pay day lender once and paid straight off. should i try again or go elsewhere
Page 1
    • Caz3121
    • By Caz3121 4th Dec 17, 3:29 PM
    • 11,031 Posts
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    Caz3121
    • #2
    • 4th Dec 17, 3:29 PM
    • #2
    • 4th Dec 17, 3:29 PM
    you would be turning unsecured borrowing into secured.....rarely a good idea
    how much more would you be paying back over time? "£258 x ? months" v's "£58? x ? months"
    Probably best to look over at the debt free boards for help with your current budget
    • Sarastro
    • By Sarastro 15th Dec 17, 10:34 PM
    • 393 Posts
    • 337 Thanks
    Sarastro
    • #3
    • 15th Dec 17, 10:34 PM
    • #3
    • 15th Dec 17, 10:34 PM
    No - bad idea. Really bad idea. Keep the debt unsecured.

    You might lower your monthly outgoings, but the total amount you will pay back in interest over the life of the mortgage will frighten you half to death. Do your sums.
    Debt 1/1/17 - Credit Cards £17,280.23; overdrafts £3,777.24
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    • Tarambor
    • By Tarambor 16th Dec 17, 5:08 PM
    • 2,219 Posts
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    Tarambor
    • #4
    • 16th Dec 17, 5:08 PM
    • #4
    • 16th Dec 17, 5:08 PM
    £10,000 over 36 months at a decent 3.3% rate, repay £10,509.
    £10,000 over 36 months at a quite high 9.9%, repay £11,528.
    £10,000 put on a mortgage at 3% over 20 years, repay £13,261.
    • sourcrates
    • By sourcrates 16th Dec 17, 5:35 PM
    • 13,210 Posts
    • 12,632 Thanks
    sourcrates
    • #5
    • 16th Dec 17, 5:35 PM
    • #5
    • 16th Dec 17, 5:35 PM
    i have a loan which i pay £258 per month a real drain on my finances. I'm looking to borrow more /remortgage to get the 10k i need to pay off loan and reduce my monthly outgoings by about £200 a month. Good idea?? Tried a few months ago and my current lender refused my application due to my wife having used a pay day lender once and paid straight off. should i try again or go elsewhere
    Originally posted by darlo1883
    Oh where do you start with a question like this.

    Consolidation seems such an attractive option, just add it to the mortgage, and forget about it, trouble is, when you've done it once, you tend to find an excuse to do it again, another loan, or credit card, and so on.

    Then comes the reality of what you've done, and you find yourself on the brink of potential bankruptcy.

    It really is not a good idea for so many reasons.
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    • Dobbibill
    • By Dobbibill 17th Dec 17, 1:44 AM
    • 2,725 Posts
    • 3,794 Thanks
    Dobbibill
    • #6
    • 17th Dec 17, 1:44 AM
    • #6
    • 17th Dec 17, 1:44 AM
    i have a loan which i pay £258 per month a real drain on my finances. I'm looking to borrow more /remortgage to get the 10k i need to pay off loan and reduce my monthly outgoings by about £200 a month. Good idea??
    Originally posted by darlo1883
    No - this is not a good idea.

    How long have you had the loan?
    How much was it when it started?
    What has changed since you could afford the loan (at the start) to now (when it's a drain on your finances)?
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


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    • DCFC79
    • By DCFC79 17th Dec 17, 9:40 AM
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    DCFC79
    • #7
    • 17th Dec 17, 9:40 AM
    • #7
    • 17th Dec 17, 9:40 AM
    Look at your spending and cut back and stick to the plan.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • poppasmurf_bewdley
    • By poppasmurf_bewdley 17th Dec 17, 10:26 AM
    • 5,114 Posts
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    poppasmurf_bewdley
    • #8
    • 17th Dec 17, 10:26 AM
    • #8
    • 17th Dec 17, 10:26 AM
    No matter how many times it's tried, and no matter how it is covered up, disguised, or covered with snow during Christmas, borrowing extra money is no way to lower debt.

    If you cannot manage at the moment, they you need to lower your spending and outgoings to match your income. Do an SOA, get it up on here, and we will endeavour to help.
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    • patman99
    • By patman99 20th Dec 17, 5:32 PM
    • 8,163 Posts
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    patman99
    • #9
    • 20th Dec 17, 5:32 PM
    • #9
    • 20th Dec 17, 5:32 PM
    The only time re-financing works is when you can get a loan for the final settlement of the existing loan, for the same remaining time period and at a lower rate of interest.

    I managed this with car finance a few years back. Best Apr from bank was 16%, so went with a 12% over 5 year deal with a car finance company.

    3 months later, bank offers a loan of same size, but over 3 years at 7%. I took the loan, paid off the finance on the car and saved several £s in the process.

    Much harder to achieve the same these days though.
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    • Bedsit Bob
    • By Bedsit Bob 20th Dec 17, 9:13 PM
    • 9,980 Posts
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    Bedsit Bob
    trouble is, when you've done it once, you tend to find an excuse to do it again, another loan, or credit card, and so on.
    Originally posted by sourcrates
    I can vouch for that, from bitter personal experience.

    Also, refinancing invariably "resets the clock", nullifying all the payments you've already made, and putting you right back at the time frame you started with, or possibly even longer.
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    • jonesMUFCforever
    • By jonesMUFCforever 20th Dec 17, 10:42 PM
    • 24,433 Posts
    • 11,719 Thanks
    jonesMUFCforever
    The new mortgage rules will prevent the OP doing what they want to do - the best they can hope for is a mortgage for the length of existing debt ie if a personal loan over 5 years is put on the mortgage then that portion must be repaid within 5 years.
    Not worth it IMO.
    What goes around - comes around
    give lots and you will always receive lots
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