Can you put the loan on top your mortgage?

MAS21

Can anyone give me advice on this and tell me if it is an option, I have a mortgage and a loan of just under £5000 and would love to pay it of quicker. Is this even possible? I am due to re-mortgage near the end of the year. Or another thing is, can ask for a lump sum when you remortgage, so I could pay the loan that way, does this happen?
Thanks:)

_Andy_

Depends on your LTV etc but yes possible - bear in mind if you put the £5k as the same term of your mortgage you could well end up paying back more interest.

Tixy

Hi and welcome

If you had sufficent equity in your house (and a good enough credit rating) you could consolidate the loan into the mortgage.

But this will almost certainly mean you would be paying your loan off over a lot longer (how long does your mortgage have left to run?) and could pay far far more in interest over the next 20or more years than if you just keep the £5k loan as it is. Also you would be moving unsecured debt of £5k to secured which is never advised as should you run into financial problems in the future (lost job, inability to work through ill health or whatever) then you would be that bit more likely to lose your house.

Never advised to be honest. What are the terms of the loan you have now? how long was it taken out over? how long left to pay? whats the APR? how much are you paying each month and how much could you afford per month? Did out your current loan paperwork to see if overpayments are allowed.

MAS21

Thank you tixy. I was really looking for an easy way out to be honest but it never is, your right I should just leave it as it is. I pay £150 a month just now and it will be paid of in 2013. Not sure what the APR is. I have worked out I can probarbly pay of £125 a week extra into it as well as the £150 a month, it will just mean that is it no other personal spending. Which is fine. I just hate having it in the back of my mind all the time.