debt consolidation and remortgaging

GettingThere_2

Hi jules :hello:

Sounds like a very similar position to mine exactly a year ago! We had taken a consolidation loan with Purple to clear outstanding debts, but it cost us a fortune (borrowed 30k, ended up paying back 44k...). Our mortgage was also with NR at the time, and we wanted rid of the Purple loan, so we tried to remortgage to consolidate it into the house. Two lenders turned us down before we had the idea of talking to NR!

NR were fantastic. We weren't trying to take on more debt, just pay less on the debt we had. We valued the house at 105 (based on houses for sale in the same road), and NR gave us a mortgage for 100 at a decent rate. We had the same debt but were paying 330pcm less than before. The length of our mortgage didn't change.

This isn't the right solution for everyone, but it was perfect for us. Our finances are now very manageable, and the debt is coming down! I would suggest talking to NR - they might offer some useful alternatives.

I know this site is about getting out of debt, and this solution just secures the debt on your house (we've had this conversation before I think, Xbigman!) - but for us, re-mortgaging gave us more money every month to ease worries. Don't write off the idea straight away!

All the very best to you!

severussnape

when NR did our remoertgage it wasn't a drive by valuation.

the bloke came in was really nice asked us what we thought the house was worth and had a good look around measured the rooms and left.

he didn't tell us anything but the form came back agreeing with our own estimation. if you are still thinking of going down this road give NR a call.

Xbigman

If you can avoid the PPI, NR's rates are good and their loan to valuation ratio pretty flexible. But they do push the PPI so be prepared to say 'no' several dozen times as well as read the small print in case they 'accidently' put PPI on the paperwork after they accept the 'no's'.

But none of that is the point here. The best loan company in the universe does not make consolidation the right decision, in fact it very rarely is.
I would encourage anyone to try tight budgeting and paying off debts first of all. If the budgeting is a failure at least you know where you stand.
Regards



X