Re-mortgage Or Not!!!

SINDYGIRL

Hi - hope you can help. me and my partner have a 50K morTgage on property worth 275K. term left is 8years-we pay £700 pm -we are both 50.
Problem is we have joint credit card debt of 35K (dont ask!!) anyhow we jog along but after paying min payments there is nothing left. should we remorgage to pay all debts off. i contacted a financial advisor who said he could get us a morgage with beaconhomes (never heard of them, but we do have a little adverse credit) term would be 12 yrs 85000 morgage - payments about £900 p.m. are we just going back down a slippery slope although both of us promise to cut cards up. we have both got jobs with joint annual income of bout 45K. financial advisor says it is the best thing - i worry about being 62 bewfore it is paid off as although i owe loads the 8 year term i have now seems like light at the end of the tunnel. What do you all think?

herbiesjp

SINDYGIRL wrote: »

i worry about being 62 bewfore it is paid off

If you both go along making only the minimum payments will you ever pay off the cards though?

beecher

You worry about being 62 before it is paid off, but do you have an alternative plan? You could sell up and downsize to clear the debt - other than that I'm not sure what else to suggest. Definitely cut up your credit cards though - you could go to the Debt Free Wannabee site to get advice there on how to cut back on spending.

SINDYGIRL

I Just Cant See An Alternative, My Current Lender Isnt Lending At The Moment And We Do Have The Equity. So Is My Only Option Remortgaging Paying It All Off And Starting Again-i Cant See How Im Going To Pay It Back Otherwise.

herbiesjp

What is the adverse history you have?

Has your adviser looked at all options?

SINDYGIRL

Havent Missed A Mortgage Payment In The Last Year But Several Late Credit Card Payments. Abbey Have Refused Us And Was Told That If Abbey Refuses Then No Other High Street Will Lend.

herbiesjp

Well it is always worth a chat with other lenders to see how they feel, especially at that LTV.

I woulde be happier if my broker had discussed with other lenders as opposed to making a generalisation like that.

There could be other lenders willing to listen, but it doesn't look like your broker has even considered them

Admitted it will be difficult in the current climate, but you will not know unless you try.

SINDYGIRL

ifa SAID HE TRIED ABBEY AND CHELSEA B SOCS BUT THEY REFUSED ME

herbiesjp

As long as you are happy the IFA has tried all other avenues, then that should be your mind made up then

SINDYGIRL

just one last ?, went to morgage broker, infinite mortgage solutions (IMS), came up with beaconhome loans who will remortgage us. how does this sound for fees as i have no idea!
Fees to beacon home loans
arrangement fee - £1762. 92
deeds release fee 40.00
redemption admin fee 125.00

other fees
broker payabe to IMS 1950.00
Legal fees payable to
IMS 595.00
________
£4 4 7 2. 92

Does this sound ok?
I would be grateful for replies as i have no clue.

herbiesjp

A £2k fee on an £85k mortgage is excessive

I am assuming they are keeping the fee they will get from the lender as well

So even worse if that is the case


I'm sure you could find an adviser to do this fee free of for less