Consolidating credit card debt on to mortgage

scotslad1983

One year ago I took out a two year fixed rate mortgage of £77,500 on a £150,000 property. After these two years are complete I expect the outstanding balance to be in the area of £74,500.

I hold credit cards with a total outstanding balance of £10,000.

At the expiration of my two year deal I plan on finding a new low fixed rate deal (wish me luck!) - but my question is, can I take the loan out for £85,000 on my property.. thus giving me the £10k to clear my other debts? If so, is the money deposited to my bank account to allow me to do so?

Cheers

tyllwyd

We did something similar - remortgaged for a larger amount (to fund a house extension), and the conveyancers just asked for bank details to pay the surplus funds into, so that shouldn't be difficult at all.

The bigger question is whether you should be considering consolidating credit card debts onto a mortgage. You are turning unsecured debt into secured debt, and you should have a good look at the figures because you may end up paying a lot more in interest. On the debt free wanabee board a lot of people use the snowballing calculator on http://www.whatsthecost.com/default.aspx?country=uk to work out the most efficient way to make debt repayments. I wouldn't rush to make a decision - putting it on the mortgage isn't a magic wand to make it all go away.