Mortgage advice/help, What do u think?

babuseat

Afternoon Folks,

Just in a bit of a pickle really,not knowing what to do . And after all the fab advice ive seen on here, was ust wondering what your view was on our current situation.

Our Mortgage deal comes to an end this month. Our balance is 67,000 with 16 years left. We do however have £8,000 worth of CC debt, which we would like to get rid off, and our initial plan was to add this debt to our mortgage, which would clear all our debt.The house next door is up for sale £165k but realisticaly a surveyor would value it in the region of £125-£135

So with a sprog on the way, we would want a 5 year deal.....like soo many out there, but the rates dont seem that competitive enough. This is what we have been offered by First active(this is who we have our mortgage with.)
Have the £67k on the Svr which is 1.5% above the base rate, and take out a seperate mortgage out at 3.99% 2 year for the £8k with a £699 arrangement fee. The penalty to come out of that deal would be a max of £215.00.
OR

HSBC are offering 3.99% 5 years with an upfront £999 fee, 65% l.t.v


So just dont know what the best thing to do, first option or hang on till a decent 5 year fixed comes along and carry on paying interest on my credit cards.

Thanks sooooooooo much for reading my waffle, and any help would be gratefuly received:j

beecher

What about sitting ont he SVR for a while and overpaying your credit cards by as much as possible? You could go onto the Debt Free Wannabee site for help - paying your debt over 16 years is going to cost you a lot in the long term and you'll be freeing up some money when you're only paying 2.5% on your mortgage.

getmore4less

babuseat wrote: »

We do however have £8,000 worth of CC debt, which we would like to get rid off, and our initial plan was to add this debt to our mortgage, which would clear all our debt.

You don't clear the debt you just convert it from one debt to another.

You need to understand where this debt has come from and what you need to do to stop it building up again.

Time to do a full analysis of your finances and decide what hte best action is, debt free wanabee is the place to do that.