Extending a mortgage to cover a loan amount

declanmcc

Hi Folks,

The simple thing to do would be to phone Abbey and ask them about this, but I thought I'd run it past you very knowledgeable folks first of all.

In August, my fiancee and I bought a house with an #86k mortgage.

We're trying to save to get married however the saving is a bit of a nightmare with credit card and credit union debts I have.

It's not a lot compared to what other people have to contend with, but my debts are:
4900 - 0% on Egg (5000 credit limit). Repaying #100/month
1200 - 17.9% with First Trust Bank. Next repayment is around #70.
1200 - Credit Union (repayments 60 quid per month)

The 1200 quid on First Trust has been amassed within the past 3 months for decorating our new house and probably the best thing to do would be to balance transfer this debt to another 0% card.

I read a suggestion in another post about extending a mortgage to cover a loan amount.

Can anyone give me some advice on this route, or would it perhaps be best to stick with the 0% credit card route? My total debt is #7300, would it be possible to increase our mortgage from 86000 to 93700 to consolidate the debt? The only reason I'm considering extending the mortgage is to cut out all my monthly payments. True, the monthly mortgage payments will increase, but the chance to save a bit of wedding money would be a welcome bonus!

Any advice would be most welcomed!!!

(Happy New Year to you all)

Robert_Sterling_3

Spend less
Earn more.

MarkyMarkD

Robert is right, of course.

You haven't really provided enough info. If you have only recently bought the house, and borrowed the most you could then (90%?) it is likely you can't borrow any more, but that depends on your lender's approach to further advances.

But unless you are really tight on income (from the point of view of getting more credit cards) I should prefer to go for the 0% card route. Not being able to meet the payments is not a reason to not do this - if you get 0% cards covering more than the amount of your current debts, you can stash the surplus in a savings account and use some to meet the payments for the time being.

So, I should pursue that route if at all possible.

As for saving for a wedding, take Robert's advice. If you love each other, get married. It doesn't have to cost anything. No point starting married life in huge debt just for some big shindig, IMHO.