Re-mortgage or Secured loan which is more likely to be accepted??

bethg2009

Hi all thanks for taking the time to read and reply (if you do) Please bear with me cos I really do find it hard to get to the point most of the time lol!:rotfl:

Okay, our fixed term mortgage period ends at the end of January 2010 (only just remembered!) so obviously we need to sort a new deal out, just while we are in the process we were thinking of borrowing more money to consolidate everything we owe together.
The mortgage is n my partners name alone the remainder of which is £19840.00, he only pays £155.00 a month for this at the moment at a rate of 4.99%
Together we have a secured loan with a balance of £8490.00 although this was only for his benefit not mine he pays £482.00 a month for this at a rate of 11.12%
He then also has a personal loan with a balance of £2800.00 and pays £276.00 a month for this (unsure of APR)
His CC Balance is only £350.00 he pays £55.00 a month (again unsure of APR)

So in total he has outstanding debts of £31480.00 and pays £968.00 to these per month.

I also have outstanding debt which I am paying off at a reduced rate at the moment the balances of which total £11480.00 and I pay £185.00 per month towards these.

We want to borrow £55,000.00 to clear all our debts off, buy a car and do some home improvements (needed a new roof for about 6 year!!)

Our house was valued 5 years ago at £67,000, houses round here now go from around £85,000 upto about £115,000, so based on a minimum of my house being worth £80,000 are we likely to be able to remortgage against it?

Any advice as to where to go would be brill cos we really do not have an absolute clue as to what we need to do, thanks.

bethg2009

Helloooo, is there anybody there to help me out??

every_penny_counts_2

I am currently doing something similar to you Beth. We have an outstanding mortgage of 82,000 and property is worth approx 200,000, and are in the process of taking out additional borrowing on our mortgage with our lender to clear £15000 debt.

I think it depends on your circumstances but you'd still have a healthy LTV even if your house is worth your lowest estimate. I looked on moneysupermarket.com to check out current deals but decided to stick with our current lender as we have a fixed rate until June 11 so was better for us to keep it in the end and add on top. It's worth ringing your current lender and asking, i was surprised mine offered a really good deal.

It was a big decision for us to secure our unsecured debt but we are going to throw all our extra money at the mortgage and overpay as much as we can. I am hoping to join the mortgage free wannabe board in the New Year!
There are better people out there than me to give you advice re numbers (Dimbo was great if he comes along!), but ring your current lender and try moneysupermarket and it'll give you an idea of the deals out there. Or an independent mortgage advisor/broker-lots of details of those on this site. Good Luck!!

bethg2009

Awwwww thanks hun, I just want shot we want to try and halve our outgoings and hopefully by doing this we will sick and tired of living like paupers now lol!!
Good luck!

every_penny_counts_2

I know that feeling! We are going to be 400 a month better off by doing this, and even if we are putting it all towards the mortgage at least it will feel worthwhile!

Conrad

Hello

Assuming your credit history is fine and there are no complications, you have the pick of the market. I'd tend not to use small lenders for this sort of case as they have some very odd rules on debt consolodation, but someone like C&G might be worth a look. Abbey are cheap but incredibly incompetent although some by luck still get a decent service, but it's hit and miss.

Woolwich have awful service outcomes.
Halifax are ok but of course they the same as C&G really, as they are all owned by Lloyds.

I would'nt bother with RBS as they owe billions in bad debt.
Northern Rock are pretty decent even though they are 100% state owned - they are'nt as cumbersome as RBS.

Nationwide I find ok in terms of service but can be very long winded if your one of the many unlucky ones that is chosen for 'further' head office underwriting.

Note how I have'nt focused on the rates and fees. Thats because at £55k borrowing most lenders offer very similar deals and in any event thier long term rates will vary against one another. For me the point is to get a fair deal coupled with good service. Thats why spreadsheets are'nt the be all and end all. They don't tell you about service or long term rate trends based on lenders past performance.

EDIT - sorry I'm editing to respond to your question about loans v mortgage. A mortgage will alwyas be cheaper andtends now to be easier to. Be very very cautios if you opt for a loan and make sure they don't add in a load of fees and insurance to the actual loan advance - it's the oldest con in the book.

Also with regards a mortgage be aware the lender will try and sell you insurance but they will not be able to compare say the critical illness claims definitions of pone provider against another. Smart people NEVER buy insurance from lenders, not ever.

All the best

dimbo61

Hi beth
Just had a look on the Northern Rock website at the 5 year fixed deals
1 deal was 5.39% for 5 year fee £995 70% LTV with an ERC of 4% until 01 march 2015.
Now using "whatsthecost" website and putting in £55,000 over 25 years gives £334.14 at 5.39% ( you will also pay back over £100,000 over the term at the 5.39% rate !!!)£45,000 in interest.
So instead of paying out over £1153 a month in mortgage and loan repayments you would pay £334 for the next five years ( fixed )
What worries me is how did you run up the debts in the first place ?
If you do remortgage and clear all the old loans CC cards how long before you end up borrowing more ?
You could take the mortgage out over 10 years and pay £594 a month ( half the cost of your debts right now !!) and only pay £16,284 in interest over the 10 years.
I just picked NR out because Conrad has written about them not a recommendation and this is only my opinion not advice GOOD LUCK

dimbo61

NR also allow overpayments to reduce the amount of interest you would pay even more !

sclement

Hi All
I'm after some advice as well.... I have a mortgage and a business loan . What would be the best wat for me to go for a remortgage and accumulate everything into one. I'd probably need to get an ltv of 95%, and interses only as I would use the business to fund an endownment policy to cover most of the mortgage???? cheeeeeeeers

dimbo61

Hi sclement
Dont think thats a go in the current market
You would struggle to get a 95% mortgage and even less chance with it being Interest only
If housing prices went even lower next year you would be in negative equity

bethg2009

Thanks for the responses guys, you're all fab!!
I've got another question though before we go ahead and try to re-mortgage -
The mortgage is going to be in my partners name alone as it always has been, is my bad credit likely to have an adverse affect on this at all? He has never had any problems at all getting credit from anywhere, never refused a loan or CC nothing at all and will they base it on his income alone o the value of our property?