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remortgage
sharilou75
Posts: 10 Forumite
Hy, just need some advice really. Have been offered a remortgage with ge money at a rate of 5.94% on a 2 year fixed deal, we can have upto 60% LTV which realistically is around £69000, based on our current value of our home.
Really not sure what to do because we have around £12000 unsecured debt, which we can comfortably afford at the moment and a very small mortgage of £23000 oweing. My question is should we take this big step and pay off all our debts, leaving us with plenty of spare cash to totally re-decorate our home, and make some much needed home improvements or stay as we are, working at the debts, which should be paid off in the next two years...the problems we have are that we have around 3 defaults registered against us and this is the only lender that will lend to us in this current economic climate, has anyone had any experience with this lender and would recommended them?, because really not sure what to do for the best, we could totally lead the life we have been craving for the last 10 years!, our current lender is the Derbyshire BS at a very similar interest rate...any thoughts will be very much appreciated. thanks for listening.
Really not sure what to do because we have around £12000 unsecured debt, which we can comfortably afford at the moment and a very small mortgage of £23000 oweing. My question is should we take this big step and pay off all our debts, leaving us with plenty of spare cash to totally re-decorate our home, and make some much needed home improvements or stay as we are, working at the debts, which should be paid off in the next two years...the problems we have are that we have around 3 defaults registered against us and this is the only lender that will lend to us in this current economic climate, has anyone had any experience with this lender and would recommended them?, because really not sure what to do for the best, we could totally lead the life we have been craving for the last 10 years!, our current lender is the Derbyshire BS at a very similar interest rate...any thoughts will be very much appreciated. thanks for listening.
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Comments
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YOU DO NOT PAY OFF ALL YOUR DEBTS YOU JUST MOVE THEM.
You will also probably be taking them over a longer term so will cost more in the end.
Look at snowballing.
http://www.makesenseofcards.co.uk/snowcalc.html
With a bit of shuffling you can probably better your 2 year target.
If you can tackle the unsecured in two years why not go for mortgage free in 5.0 -
What rate is the unsecured debt at?
Age?
When will the defaults leave your credit record?
What was the source of the debt? Is it something that might be repeated?
Better 5.94% than payday loans, or 53% & 97% personal loans, I guess.
Have you ever completed an SOA? (statement of affairs) I think you need to get to the debt-free wannabe forum and do so.
If you can comfortably afford all your debts, why not just save the spare cash you have and decorate over time?Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0
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