What is the best way forward

S&J's_mum

Hi

I am posting for the first time and need advice. I am currently the only one working due my partnet having to an accident at work. My mortgage is £75000 with 17 years left to run. The house is valued at £250000. I have credit card debts of £7500 and need to carry out home repairs (new windows, etc) for £7500. I think I would be best remortgaging as my latest deal ends in October. My mortage would then stand at £90000. The increase in life cover premiums would be £5 per month. I earn £1850 net per month and my outgoings including credit card repayments are £1800. This leaves very little at the start of each month. The interest free credit cards seem to be disappearing very quickly so eventually I will have to pay interest. By remortgaging and destroying ALL credit cards my outgoings will reduce to £1500 leaving £350 each month. WE will eventually get compensation for the injury at wok but as yet do not know how much or when. I have not included any benefits in the calculations as they may be stopped at a moments notice and they tend to pay for the children's school stuff.

I am talking myself into remortaging or is it the best move?

Thanks in advance for ANY advice

herbiesjp

It does sound like your finances are stretched at the moment.

I would strongly recommend having aword with a whole of market mortgage adviser to see what courses of action you could look at.

What has your current lender offered you in terms of deals?

Adding unsecured debt onto secured debt is not normally a money saving move as initially the payments may be lower, but if paid over a longer mortgage term it means you pay back more in interest (making overpayments can reduce this effect)

However when finances are tight sometimes options are few and far between.

WHat is your gross annual salary - around £28,500?

S&J's_mum

Hi
My gross salary is £31-32K the net monthly figure reflects the fact my pension contributions are taken out before I am paid. I have considered unsecured loans but the monthly payments would stretched us too thinly. I need to be comfortable on a monthly basis until my patrner returns to work or the case is settled. I am looking at 2 year deals so I can repay capital then.