poor credit rating

android_2

i want to borrow £50 000 on home owner loan,i have opted for this due to being tied into mortgage deal till 2/2/08,i would have to pay £967 to come out of deal. will they lend me money to pay off credit cards and loan .i want to get rid of these cards.i am with abbey who i have got my mortgage with no missed payments my credit score is poor .i earn £44 000 and wife earns £18 000.if i tell them why my score is low will this make a difference?i think my score is low due to borrowing money to help family member out so have borrowed alot of money in short space of time!!!!!!!!!!! please advise very worried!!

Bernard_Coleslaw

Consolidating short-term unsecured debts into secured ones is rarely a good idea, to be honest. You end up paying back far more interest, plus having this debt secured against your home makes you more vulnerable, not less. There is also the temptation to let the unsecured debt creep back up afterwards - another lose-lose situation. So think very carefully before doing this.

If you are convinced that you want to do this, have you tried approaching your current mortgage lender for a further advance? They may be more sympathetic re: your credit score and they may have better rates for this than the loan companies that advertise on TV! Of course, it all depends on how much equity you've got.

As a separate point, it might be worth getting a copy of your credit report to get a better idea as to why exactly your score is where it is.

But, to repeat myself, think twice before consolidating unsecured debt against your home - it's not for everyone.

BC

android_2

thats who i am borrowing the money off (my mortgage company)hopefully then in 2 years get a good deal mortgage .do you think the abbey will lend me the money or should i explain situation about helping family member out.thus borrowing a large amount over short period of time

Bernard_Coleslaw

You won't know until you talk to them!

What's your current mortgage balance - how much will it be when this £50k is added? The more equity you have left over from your property value, the happier your lender may be.

BC

android_2

£57000 left on mortgage making it £107 000 left paying £795 back which is easier than£1500 i am paying now

android_2

house worth £235 000

android_2

anybody else with some ideas

mountainofdebt

I know you have also posted on the debt free wanabee board re this problem and I have replied to you there.

I don't want to sound unsympathetic but have you had taken any of the advice that was offered to you some weeks ago when you initially posted your situation?

If not, why not?

If yes, what advice from the professionals did you receive??

Until we know the answer we're just going around in circles.