Should I remortgage and consoldate debt

savvylass

hello can one of you wonderful forum users please give me your opinions on this as i really need some financial advice.

I currently have a Mortgage of 58K on property valued at 110K
My monthly payments are £240

I have a person loan with Tesco finance for 9.5K and its due to end 2013 and is £405 pm.

Should i perserve with the loan as it doesnt have long left or should i remortgage to get amount cleared? Its such a high amount i would rather be overpaying my mortgage (i think?!)

I just got a mortgage quote only thing is i need to borrow the additional 9.5 over my mortgage term which is 25yrs but it would only be an additional £68 a month so my thinking is my monthly cost would go from £645 down to £308 and I could over pay also freeing up some cash each month.

but im a missing something and is it maybe not a good thing to do?
in short shud i add this debt to my mortgage or is that a bad thing to do when only 2 yrs left? (but thats two more yrs of being quite stretch if these amounts remain the same each month?

i can get a really good rate from morgate provider so cud be overpaying around 200quid so wud that make it worthwhile adding the 9.5K i really dont know how to weigh up correctly so any help appreciated

lender is sending out papers anyway to sign so i have time to think about it but it is agreed in principle and credit check passed

~Beanie~

Not a good idea in my opinion. You will be paying interest in a loan that would be finished in 2 years for the next 25 years!

Are you struggling with the repayments at present? If not, leave it as it is.

rising_from_the_ashes

Yup, Beanie's hit it on the head - if you've no problems making the payments, then keep going.

If you calculate the interest you'll pay for the loan amount over the 25 years it'll cost a huge amount more.

bottleofred

Agree with the others. Debt consolidation rarely works and the rate of interest you'd pay on the loan over 25 years would be loads. Post your statement of affairs and that way you'll get loads of tips/advice on how to save cash.

shop-to-drop

Remortgaging may have fees too so that would be another cost involved.

fatbelly

And it turns unsecured debt into secured which is not good.