Re-Finance loan options

ajfy2k

Hi guys n gals

In the past I have gone a bit OTT on the old loans and credit cards and built of a large amount of debt,

What Monthly Appox Remaining Clear
Car Loan 225 7000 Jul-2012
Laptop 33 1000 Jul-2012
Laser Eye 67 3300 Feb-2014
4 X CCards 150 7000 2050 ish ???

The credit cards have been ripped up and binned (iv seen the errors of my ways) but as im only making a bit over the min payments on the cards so im only clearing a tiny amount off each month,

What im thinking is to take out £14,000 over ten years to refinance the loan and CCards, about 185 a month @ 10%, leaving me with a chance to save £200+ a month towards a deposit for a house (the goal of this plan),

Few questions:
1. Overall what do you think of this plan, any better ideas?
2. Is it possible to take out 14,000 unsecured? im on 21450 a year with no credit problems,
3. I have been advised that when it comes to taking out a mortgage the month debt repayment figure is what matters not the total amount owed, is this correct?

All advice and ideas welcome,

thanks

ash

Rafter

ash,

Sorry to dash your hopes but with borrowings of £18,000 already and a salary of £21,450 there is no way that anyone is going to give you a loan - let alone one for £14,000.

Generally your loans and cards will count against you in two ways when you take out a mortgage 1) The affordability test - can you make the payments on your mortgage and your loans and 2) the income multiple test where the total amount of loans may be deducted from the amount you can borrow.

So in your case you might be able to borrow 3.5 times salary (£75k) but your borrowing would be deducted leaving you able to borrow about £60k - you would have to find at least a 10% deposit meaning you could buy a house worth £66k - not sure where you live - but that doesn't buy much in most parts of the country.

You really need to fill out a statement of affairs, post it on the debt free board and see what ideas you can get to boost your income and reduce your outgoings. If you realistically want to buy a house you need to be looking 5 years ahead in my view, once you have had a chance to clear your current debts.

Good luck

R.

http://www.makesenseofcards.com/soacalc.html

ajfy2k

thanks,

looks like its going to have to be a second job to start getting these cards down,

ash