Adding Existing Debt to a New Mortgage?

marty1888

Can this be done?

bride2be2006

That is a question I wanted to ask, but did not dare!! I posted a query about getting a mortgage when you have debt on the mortgage boards and received two very scathing replies!! (one nice one too though but it still put me off!)

marty1888

bride2be2006 wrote:

That is a question I wanted to ask, but did not dare!! I posted a query about getting a mortgage when you have debt on the mortgage boards and received two very scathing replies!! (one nice one too though but it still put me off!)

can think why, after all this is a moneysaving forum and its a money saving related issue!!

chevalier

Bear in mind this is only my opinion. But I believe what you can do is have a mortgage for x amount, and then a secured loan at the same rate as the mortgage for y amount. BUT if the debt you have in unsecured (ie not currently tied to a property), you are taking a big risk converting it to secured, ie on your house. IF you can't pay that debt now, about the worse that can happen is that you get a court judgement against you and the judge decides what you can pay. IF you can't pay a debt secured on the property you COULD lose your house.

IS IT REALLY WORTH THE RISK? If you do not analyse WHY you spend, and change the way you view money, there is the realy risk that you start spending on credit again, and the whole issue gets even worse.

I do not know if there are many mortgage lenders that will do this anyway. And if they do it may not be at a very good rate of interest, so it may not save you all that much money.

If you post a Statement of Affairs we may be able to help you spot areas where you can cut back
cheers
chev

marty1888

Basically, Ive spotted a house for £70k and wanted to know if it would be possible to add £20k existing debt onto a mortgage for £90k.
The house is a 50% share.
I currently earn £23k a year.

Pauper_Princess

marty1888 - I'm not sure you can do this - I think lenders will only give you
a mortgage on the value of the house? I imagine you could re-mortgage later to add the loans if you wanyed, provided you had sufficient equity in the house... I could be wrong though!

bride2be2006 - I'm sorry you had scathing replies - possibly the people replying didnt mean to make you feel bad? Sorry if they did. Sometimes people post things in light of what THEY would do, without trying to put themselves in the other person's shoes.

scottishspendaholic

Hi marty & bride,

This is possible - please PM me for more info (I'm not a mortgage broker - I just don't want to post all my info about my mortgage on here).

scottishspendaholic x

marty1888

scottishspendaholic wrote:

Hi marty & bride,

This is possible - please PM me for more info (I'm not a mortgage broker - I just don't want to post all my info about my mortgage on here).

scottishspendaholic x

pm sent.


Thanks

tomstickland

There's a general dislike of borrowing on mortgages for a simple reason: you end up paying back the loan over 25 years and pay back a good deal more in interest than if you used a regular loan / cleared your debts.

90K / 23K is more than 4 times salary and is inadvisable.

Speak to some all of market brokers though because it might be possible. I'd advise against it personally. If possible it'll probably be at some appalling rate too.

There are a few other threads in this part of the forum where people are paying out over 60% of their take home pay on mortgages. Not a nice situation to be in.

CLAPTON

several things

the info is a bit confused but if i understand it correctly then
if your mortgage provider is willing to give you a mortgage of £90k (70k +20K) then simply use the 20k to pay off debt. Is this what you are asking?
if the house is only worth 70k then its unlikely that a main stream mortgage provider do this. but there are other credit providers taht will do this ...at a price of course.


If you have significant debt I would suggest you post a full SoA and provide full details fo your financial situation and see if people here could help you.

tomstickland

I've thought about it a bit more now and I'd urge the OP to think very hard about this. Do it the proper way round. Clear the debt and save a deposit. The world of sub prime mortgages is just another debt trap.