Q on consolidation

cornholio

hi all,

So....currently have 28k of debt (loan and CC on long term balance transfer rates), and a mortgage of 100k (house value of 165k).

Mortgage fix runs out soon, so I'm looking at remortgaging, and one thing i want to look at is adding the debt to the mortgage. What I'm looking for is a calculator or way to work out the permutations of the costs of adding the debt to the mortgage and overpaying, to compare the costs against how long it would take and how much interest would be paid without adding the debt to the mortgage.

So, if i got a mortgage of 130k, it would be about £100 per month more than i pay at the moment, with the debts paid off, meaning i could overpay by 200-300 a month, and i want to compare the costs of this against the costs of keeping the debt where it is.

Hope that makes sense !

Thoughts / advice please,

thanks
Stu

CH27

Post up your SOA & people will be able to see all the details & advise you.

Hannah_10

Stu why would you want to secure a debt against your house? It's not generally thought to be a good idea at all. As a rule this is more expensive in the long term and carries the risk of homelessness.

Hannah_10

Mortgage Calc.

cornholio

I dont particularly want to, more I wanted to explore the options cost-wise to see how it would compare.

Jesthar

Hi Stu,

Turning unsecured debts into secured ones is never a good idea. If you don't keep up payments on CCs the worst they can to is stomp around and demand payment, but they can't FORCE you to pay if you don't have the cash. If you don't keep up payments on a debt secured on your house, though, you could lose your house! It might be tempting if the repayments are less, but the accompanying risk is really not worth it...

Could you post up a Statement of Affairs? That will gove us a better idea of the situation you are in, and help us advise on what you should do? There's a link to our favourite SoA calculator in one of th esticky threads at the top of the forum.

~Jes