bank refused loan but offered re-mortgage

shelovestobuystuff

We asked online for a 10k loan and were turned down but today someone from the bank called and said the amount we applied for was too high but they could do £6,500.OH told them that would not help our situation, he was then passed on to someone else from the bank who may be able to help.That lady asked if we had considered a re-mortgage.We hadn,t so she went through a few things including a computer valuation of our property(which will have to be confirmed by a surveyor)and offered us 110k at 3.5% over 25 years,£550-60 a month.It seams too good to be true and I just wanted to ask if there is a downside to re-mortgages.

feisty1

this is typical of a bank not explaining to you....a personal loan is unsecured & more of risk to the bank, so they have offered u additional lending secured on yr property..less of a risk as they own yr house & if u defaullt they just take it back...are u having to come out of a deal to get a new deal or are you on the svr....how many yrs on yr mortgage at the moment.....who is the bank

Kavanne

You pay a lower interest rate but over a longer time so you CAN end up paying more interest.

Do you need 110k?

Do you have any early repayment charges on your current mortgage and what do you currently owe over what time?

Is that an agreement in principle they gave you or just a quote?

Kavanne

Haha feisty look like you and me are having the same thoughts!

lynzpower

Honey I know you have posted in the debt free wannabee forum.

I suspect you are looking to consolidate some debt?

Please take further advice before entering into securing this debt on your home, it is very dangerous if you cant keep up.

Trollfever

lynzpower wrote: »

Honey I know ypui have posted in the debt free wannabee forum.

I suspect you are looking to colnsolidate some debt?

Please take further advice before entering into securing this debt on your home, it is very dangerous if you cant keep up.

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.

shelovestobuystuff

At the moment we have the mortage,a secured loan,lots of credit card debts and the total repayments per month this month are about 1,400 which we are not able to keep up.We are hanging on by a thread and this seems like a strong lifeline the bank are throwing us.
We would be £800 a month better of with this re-mortgae,it seems like a no brainer,too good to be true.
Currently with halifax new offer from lloyds.

shelovestobuystuff

Trollfever wrote: »

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.

We are at our limit.Another month like this and we will lose the house anyway.consolodation makes sense,.

lynzpower

shelovestobuystuff wrote: »

We are at our limit.Another month like this and we will lose the house anyway.consolodation makes sense,.

No, trust me it really doesnt.

feisty1

[quote=lynzpower;17763283]No, trust me it really doesnt.[/quote]

I am sorry I disagree with this It very much depends on a clients circumstances and this forum is about opinion. To say No is 100% wrong, optiond shoud be explored, if the OP is any doubt please consult an independent mortgage advisor who will explain the pros & cons.........do not take this forum as advice it is only opinion

lynzpower

feisty1 wrote: »

I am sorry I disagree with this It very much depends on a clients circumstances and this forum is about opinion. To say No is 100% wrong, optiond shoud be explored, if the OP is any doubt please consult an independent mortgage advisor who will explain the pros & cons.........do not take this forum as advice it is only opinion

i am rereading her soa thread over on the other board. there is disposable income there, and lets face it going onto a DMP is a lot cheaper than securing the debt.