Remortgage/additional borrowing advice

BIG_BROTHER_WORRIES

Hello,I'm new here. Thanks for looking in advance.
Problem Due to remortgage in July (for Sept/oct)£90k interest only
With Abbey. Also have Homeowner loan with White Label
(how they made 16k ino 21k with insurance sucks!)

After being made redundant 2.5 yrs ago I had to remortgage as fixed term was coming to an end. I was temping constantly and got advice frm Charcol.

The temp job has become perm since last nov.
However,I would like to go repayment and also get rid of white label.
Rest goes in an ISA

I was thinking of trying for additional £10k from Abbey and getting
Barclays UNSECURED loan£25k
The mortgage currently has 14 yrs to run.
Flat worth £235-245k (one is for sale at£245k)
Salary£22k +o/t
Please don't tell me I'm screwed. Wish I found this site earlier
Thanks

_Andy_

What advice are you actually wanting - about the mortgage or the personal loan?

BIG_BROTHER_WORRIES

Thanks for swift help Andy.
It's just that I'm worried about not being able to get
money needed etc. basically need alot more cash

herbiesjp

Sorry - this is not clear to me

You have a £90k interest only mortgage on a property worth £235-£245k

You also have £21k outstanding from White Label


But you now want to increase mortgage by £10k to £100k - is that correct?

And want to take out a personal loan with Barclays for £25k - is that correct?

Why are you raising the extra £35k?

If you were clearing White Label you only need £21k

BIG_BROTHER_WORRIES

Thanks for replying H..
Basically I want to also get rid of my overedraft(£1600)
credit card( £3k) and put rest in a savings acct
making me behave much better financially
and if ever I lose my job etc. It would help .

herbiesjp

That still only makes £26k roughly needed, and not the £35 you are looking at £21k + £3k + 1.6k).

So you would look to increase £90k mortgage by say £26k to £116k


On a £235k property that is 50% approx.

However it will be a stretch on just £22k income - so you will need to find a lender to take into account your O/T

Although you do not say how much this is or how regular it is.

BIG_BROTHER_WORRIES

Thanks again H. It's a worry for sure. O/T is regular
only 15 hrs per month+ holidays etc.
I was wondering if it was advisable to extend mortgage by couple of yrs to make payment easier. D o you think it best to have
mortgage and seperate unsecured loan or just a bigger mortgage?

Due to the problems I've had in the past(lower income/redundancy/not brilliant advice) you could see why I'm up against it.
I know it's my last chance to get things as near right as possible.

Thanks again

poppy10_2

BIG_BROTHER_WORRIES wrote: »

Thanks for replying H..
Basically I want to also get rid of my overedraft(£1600)
credit card( £3k) and put rest in a savings acct .

Taking out a loan to put into a savings account almost never makes financial sense.

BIG_BROTHER_WORRIES

one thing I was wondering: If everything went pear shaped and I had to continue paying interst only on say £100k mortgage,
how much do I need to put away (ie £500.00 mortgage pm)?
this would probably be over 14 yrs.

Thanks