Help please...

whispony

Hi this is my first post and it's to ask for some advice.
I have 2 credit cards both of which I pay min each month total is £320 approx but from this month due to interest hike it will be over £400. I decided that this was silly as the interest rates on them were so high. The total due comes to around £14000 so I thought it would be wiser to use some of the equity on my house as I have some internal building work to do and was going to borrow £5000 for the materials anyway. I have a mortgage with Accord and decided to contact them to see what they could offer. They do not add it to the mortgage but offer additional lending at the same rate as the mortgage ( at least if the CS goes through alright it would be at the same rate). I had through all the paperwork and they are offering 4.9% (providing CS is OK) and a 2 year tie in on my mortgage at the same rate. I pay at the moment £874 per month for my mortgage alone the payments for mortgage + additional lending would be £978 as you can see it does seem to make sense. However my dilema is that they have told me their mortgage interest rates are calculated and ammended annually every March and I have no tie in at the moment, would I be better waiting it out until March to see what my normal rate would be as in theory it should come down to less than the 5.8% it is at the moment. Sorry to ramble can anyone help?

Conrad

I would wait.

What is CS?

Hope you dont mind my saying so, but if you break your posts into paragraphs, it makes it so much easier for others to read without going cross eyed! Sorry to be picky

whispony

Thanks Conrad

I was too busy trying to type at the speed I was thinking.
CS - credit score.

catriona69

Might be worth exploring whether you can switch your CC debt onto a 0% card. Also, is it realy wise to borrow extra money when you already have CC debt? Can the internal work wait until you've paid off a bit of debt?

whispony

You are right, however I don't think I would get another CC with enough credit limit to take the whole amount over and I don't want to risk searches damaging my credit score. I haven't checked it for the last couple of years but was up at 98% then and I haven't done anything new since then. This is why I am trying to decide in advance the best action to take.

The extra loan was to buy windows to complete the first floor of our house otherwise we buy materials as we go each month.

Robert_Sterling_3

Wait and c.