Another Query - remortgage or secured loan?

Carrera74

After working out how much I owe to credit cards/loans/overdraft I have thought this through long and hard and have decided to use the equity in my house to pay them all off so I only have one debt.

My mortgage is £63000 with the Halifax at 6.5% variable and according to local house prices is valued at £145000. I’d need to raise £30,000 to clear my debt – that figure still makes me feel sick

What is my best option – a secured loan or a remortgage? I know secured loans have a bad press but I am not sure if I will be able to remortgage on my own for this large amount? I bought the house before I met my partner so the house is only in my name. Ideally I would like to add him to the deeds as we have decided to split everything down the middle but I guess this is very expensive to do?

Has anyone been through anything similiar and can offer any advice?

Thanks in advance x

regularsaver1

you can do a further advance with halifax where you add the £30k to the existing mortgage - then the whole mortgage would be put on one product & you would be paying one payment for the lot. There would be a further advance fee of £275.
Halifax do also do separate secured loans but max of £25k.

Or you can move elsewhere - to get comparisons

if you stay with Halifax and want to add your partner you will need a solictor to change the names and a transfer of equity fee would be payable to Halifax

if you move elsewhere, this can be done at the same time, but you will need to pay solicitors fee for the additional work of adding your partners name. if you leave Halifax you will have a fee to leave

Back to debt consolidation - you need to ask yourself if you are ok with the unsecured debt becoming secured, are ok that the cost will be higher overall with a longer term.

But if you want one payment and one debt as such then this is an option.

jamesd

Talk with a mortgage broker about this. That 6.5% mortgage rate is high and it looks as though you may be able to both add the debt to the mortgage and get a lower mortgage rate. The lower interes rates involved should make you substantially better off if you make mortgage overpayments at the same rate as you're currently paying off the loans, until the loans would normally be repaid.

regularsaver1

yeah the 6.5% sounded like SVR prior to the recent change, now 6.75% - this is high. there are other rates