Likelyhood of adding unsecured debt to mortgage

coupedummy_2

This wont happen until my current fixed mortagage rate has finished in january.

Im after currently with westbrom building society and took a mortagage January last year on a house worth £99995 for £89995 over 30 years. So £10000 deposit and 10% equity.Due to apparently parents credit history i am fixed at 7.1% over two years.So pay £620 a month for the mortgage.

I also have unsecured debt of £12500 which i am paying £350 a month to clear as much as possible but the rate wasnt very good. So mortgage and loan is £970 a month.


At january id like to ask to add the debt,likely to be around £10000 to the mortgage.I am looking to owe approximatly £88k on the mortgage at the time with 28 years left to go.

Using the bbc mortgage calculator
i have quoted that if i add the debt to the mortage

Due to recent interest fall i could lower the term of the mortgage to 15 years , at a interest at an estimated rate of 6 %(hopefully less) would be approx £840 a month.Saves me £130 a month and shaves 13 years off the mortgage.

Same figure but using 20 years would be £712 a month.

To me this would make sense to add to the mortgage,saves me money monthly and could still bring the mortgage term.Other than the mortage lender themselves is there any forseable issues. Is the lender likely to do this for me?

Please discuss,any info appreciated.

thankyou

~Beanie~

I doubt you will have enough equity in the property to be able to add your debt to your mortgage.

coupedummy_2

Thats one issue i thought may affect it.Do lender consider individual cases or set guidlines?

opinions4u

coupedummy wrote: »

Is the lender likely to do this for me?

Highly unlikely.

You house was worth £100k. It is probably now worth £85k.

Your mortgage is probably higher than this already.

Why would your mortgage lender want to take on the risk of additional borrowing against a property that is already in (or close to) negative equity?

It's a non-starter.

Sorry.

coupedummy_2

hopefully this isnt a major problem.there are other houses on my road that have one less bedroom and no garage and just gone on the market at £105000.

Guess i will just have to see but not looking great

maninthestreet

coupedummy wrote: »

hopefully this isnt a major problem.there are other houses on my road that have one less bedroom and no garage and just gone on the market at £105000.

Guess i will just have to see but not looking great

What vendor thinks their property is worth, and what it is really worth are often completely different.