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Remortgage to pay off debts
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magikpurple wrote: »Meaning they can sell the house to pay the debt even if unsecured on the house as the current loan is?
But they have to get the orders first and if you have a payment plan they are less likely to get it as long as you don't default on any plan.
What is the rate on the loan and the effective penalties if you redeam and go for the new loan.0 -
Fair enough thanks for clearing that up for me. I am not sure what the penalties are have still to check it as its very early on in the process ie making our minds up iyswim.getmore4less wrote: »But they have to get the orders first and if you have a payment plan they are less likely to get it as long as you don't default on any plan.
What is the rate on the loan and the effective penalties if you redeam and go for the new loan.
Loan is 11%:eek:0 -
OK at 11% there is a good chance it will save you money even with some penalties. Carefull calculations may be needed.
If the £3k project is returning in reasonable time that in itself also gives a set of buffer funds.
I would also think carefully about the full term, going longer may reduce income loss risks.
Another option might be a much lower cost tracker over a longer period and unlimited overpayments much more flexable at the risk of interest rates.0 -
Ok thanks again0
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As a general rule, it's a lot cheaper to raise capital on a mortgage than as unsecured loans, plus it tends to be easier. Your house isn't much safer as, yes, the court would basically put a charging order in place effectively making what was unsecured into a secured debt, but at a much poorer rate.
The only real exceptions are where your current debts are already interest free indefinitely (usually only applies to arrears for utilities/council tax or already defaulted accounts).
I think this sounds like a good idea, even if you didn't want the extra for your 'project' as you're reducing your rate, reducing your monthly expenditure and will ultimately reduce the term. Win win win.Never argue with stupid people, they will drag you down to their level and then beat you with experience.- Mark TwainArguing with idiots is like playing chess with a pigeon: no matter how good you are at chess, its just going to knock over the pieces and strut around like its victorious.0 -
Check rates, 11% feels quite high... but I'm not a mortgage expert...Never argue with stupid people, they will drag you down to their level and then beat you with experience.- Mark TwainArguing with idiots is like playing chess with a pigeon: no matter how good you are at chess, its just going to knock over the pieces and strut around like its victorious.0
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