Remortgaging/Equity release

sven86

Hi,
Just after some advice please.
Myself and my wife were recently in receipt of a rather large amount of inheritance which has nicely cleared over half of our mortgage. This is fantastic, particularly as we are both 24 and have many years on the ladder ahead.

However, we both have credit card debt which in comparison is small, around 7% of the amount we received in total. We are currently paying 2.5% on our mortgage and our cc debt interest is 18%+. Our mortgage is with nationwide and I would like to consider the option of releasing some of our equity to consolidate our debts within our mortgage in effect. Im not 100% sure nationwide will allow this so any feedback on that would be great but also any advice on this in general would be great.

Cheers

_Andy_

Hi welcome to MSE:)

How much do you currently owe on the mortgage?
How much is your home realistically worth?
How much do you need to pay off the CC debt?
What would be the rate NW would allow you to borrow the further amount at?
Any adverse credit?

sven86

How much do you currently owe on the mortgage? £90k
How much is your home realistically worth? £220k
How much do you need to pay off the CC debt? £8k
What would be the rate NW would allow you to borrow the further amount at? Not sure on this, hence the thread - im guessing 2.5%-6%
Any adverse credit? No

getmore4less

Obvious question

Why did you not pay off the CC debt first?

Any fees would make an £8k extension quite expensive.

Have a look at Ballance transfers or 0% purchase cards to get the CC rates down.

How much can you throw at the debt now your mortgage is 1/2 the size.