Remortgage and clear loan

mambo69

Right MSE people after your thoughts

It looks like we may soon see a £350 reduction in income soon.

At the moment we have around 50k mortgage over ten years, at around £510 all in (number of deals) a loan with 4 years on at around £305 per month and a few more cards totalling around £1500

What is wonder is if I took on the 2 year fixed from HSBC I could get £65 to pay off the mortgage and loan, and around £1000 from the others. This would cost less than £500 on a 15 year deal, so with the £350 I am better off I could pay all our debt off in say 3 months.

Then we have no debt apart from the mortgage, even though i know the number of years is significantly more, and when the drop in income comes in we are overall in the same position as now, but until that time we can put the £350 per month aside

What are the thoughts, good and bad?

Cannon_Fodder

HSBC are at the pickier end. Your debts may affect affordability/whether they wish to lend to you/amount you can get.

Has the reason for accumulating debts been fixed? If not, consolidation risks repeating past actions, leading to higher overall debt.

It is not generally a good idea to secure debts.

Fees/costs/valuation will dent the "gain" you intend to make.

5 years of £500 per month, that previously you would not be paying, is £30,000...it will take 7 years saving £350 to offset that. Only you can't save, as soon you won't have it...

Suggest you visit the debt-free wannabe forum, post your SOA and get advice on the overall situation. Tackling part of the problem may result in an apparently logical approach that is not actually beneficial in the long run.

mambo69

its not debts perse, its a loan we took out last year for about 15k that is the biggest outgoing after the mortgage.

I understand the issue on repeating debts, but it was for a car change etc and I am sensible enough never to get to that level again.

You say 5 years of paying £500 would not be offset, but at the moment i am paying £315 per month extra

I see the 15 years being £90,000 and the current situation being all in £76,320 to pay back.

However some times its not all black and white

getmore4less

Why not get a cheaper car.

mambo69

my car is cheaper now, it was a number of things that occurred, mainly the dreaded consolidation