what should i do ??? help

joannemc3

hello all ,

a few questions
1- we owe around £12000 in loans an credit card debts
2- should we remortgage ???
3- or should we get a loan to repay the £12000???

currently paying around £450 a month in debt repayments !!!! shocking i know , we currently have a £44000 mortgage and would probably borrow an extra £20,000 taking the mortgage total to £64000 , the extra money is for home improvements and to pay the £12,000 , we are planning on reducing the term of the mortgage from 19 years as it is know to 15 , ive done a quick search and the monthly payment would be around £530 ish at the min our mortgage is £309 for a £44000 over 19 years , so in theory instead of paying £450 in debt repayments i would only have to put £200 ish to the mortgage , not sure if this makes any sense !!!!!!!!! have had a look at the loans from egg and for a 12000 loan over 5 years monthy repay would be £301 ...............help im confused ....not sure which is the best way to go i.e amount of interest ect that will end up paying ect

hypno06

I would try and go for whatever the shortest option is. Remember a mortgage is for many many more years than the egg loan so the total cost will be far higher, as you will be paying that extra £200 for 10 years more!

Do a snowball calculation with the cards etc that you have to see what debt free date that would give you. You can play around with it to do different scenarios including the egg loan or the increased mortgage and it will give you the total amount that you will be repaying including all interest, plus the length of time that you will be repaying each option.

fatbelly

The 12k debt is currently unsecured. i would advise keeping it that way.

In fact, if all you want for home improvements (essential are they?) is 8k, that would be better borrowed from unsecured sources.

Have you read Martin's article on cut price plastic personal loans? No mortgage can touch the 3.9% currently on offer

itsarichmansworld

I'm re-mortgaging but we're getting a better rate than our existing mortgage so it makes sense plus then we are saving to pay off our mortgage as soon as we have enough we will be mortgage free

The fact that all my debt and my mortgage will equate to 55k means we can save this within 3-4 years pay of mortgage and be home free.

I know some people on the board dont agree with consolidating but you need to do what your comfortable with.

joannemc3

whats a snowball calculation ?????? sorry !!! having a bimbo day !! ha ha

hypno06

go to https://www.whatsthecost.com/snowball

great fun as well (or is that just me being sad!!)

CLAPTON

how did the 12k loans come about. will these debts start up again once you have refinanced them by the remortgage or a new loan.
in a few years will you be back where you are today but with a higher mortgage?