Home loan from the Abbey?

ChrisFilter

Dear All,

Apologies for using the dreaded 'consolidation loan' name but it does seem like an ok idea. We have a £170k mortgage with the Abbey and £33k of unsecured debt in the form of 2 loans and 4 credit cards. Abbey's home loan rates are a lot lower than all of the existing debt and when combined into one payment we could pay it all off in 2 or 3 years rather than 5 years.

However, a couple of questions. In the current climate, is there a hope in hell of them loaning us that amount of money, even with our house as security (we both have pretty average credit ratings and have just moved)? Are there any pitfalls, besides the obvious, to home loans that I might not be aware of?

Thanks everyone

Chris

ChrisFilter

Anyone?

Chris

Ames

I don't know too much about it but there are a couple of major pitfalls that I do know of.

Firstly, like many on here including me you might not learn your lesson. You're likely to end up just spending on the ccs again.

Secondly, a credit card debt if you default can't affect your house unless they go through a lot of procedures first. If something happens and you can't pay a secured loan, you can lose your house.

Why don't you try posting your SOA (Statement of affairs) here so people can get a clearer picture and advise you more? There's a calculator here - http://www.makesenseofcards.com/soacalc.html

Hope that helps.

RAS

Pretty much - do not do it.

I think the statistic quoted is that 83% of people who consolidate get into even more trouble in the few years after.

If you or your OH loses your job with unsecured debts you can negoitiate, with secured debt you lose the house.

Put up the SOA as suggested and have a look at the snowball on https://www.whatthecost.com.

Then we will understand what the situation is.

Burlesque_Babe

hi chris

Might be best to re-visit your thread from last month which has lots of excellent advice at being able to clear the debt in just as quick a time frame and without the additional interest you'll be paying on a loan (on top of the interest you've already incurred)

http://forums.moneysavingexpert.com/showthread.html?p=14591711#post14591711