Please help - mortgage / loan advice

jman_4

Hi,

Please excuse if I have posted this in wrong section - It is actually the first site I have ever registered for but the advice I have seen today is so good, I really could do with a bit myself!

I am in a bit of a muddle at the moment and if i'm not careful will slip into serious debt in the not too distant future.

I have a mortgage with a high street lender for £118k and a secured loan with a not-so-high-street lender for £29k (as credit rating has admittedly slipped in the past year). My property is worth £145k.

The problem is I am paying £690 p/m for the mortgage (over 24 years) and £492 for the loan (over 10 years), totalling c£1190 p/m.

Is it possible to consolidate both into a mortgage payment (what would be a 100% mortgage) hopefully decreasing payments and debtors in one hit.

Any guidance would be greatly appreciated!

simonjfisher

It could be possible but will depend mainly on your income and your exact credit history. I'd advise speaking to a mortgage broker and they'll run through it with you.

AndrewSmith

To be honest you would find it difficult to find a lender who would accept a 100% re-mortgage for debt consolidation.

An option for you to consider is try to reduce the monthly payments to your mortgage by looking for a cheaper rate, either with your existing lender or with a new one (I cannot comment on the viability of this without exact details of your situation). You could then use the money you free up on a monthly basis to overpay the loan to try and clear it sooner.

Hope this helps