Re-mortgage

Pipkinslove

Does anyone know if it is possible for my son to borrow additional money as a re mortgage against our property. He is in about 10,000 debt due to being a student with various overdrafts and credit cards. He is now in a good job earning about 32,000 and we have over 100,000 equity in our property. My husband and I have bad credit rating though due to us not working now but we have never missed a payment on our mortgage and we are not in arrears. If he could borrow the money against our equity it would be much cheaper for him to pay off his debts.

Emmzi

while at the same time teaching him that mum and dad will bail him out if he is careless?

I think you are looking for a loan for him with you as guarantors, secured - best bet is the bank your mortgage is with the avoid extra solicitors fees. But on £32k this should not be too hard a stretch for him to clear and I would be wary of helping too much - doesn't sound like you are rolling in it yourself never mind putting your home at risk for him.

meer53

Your son doesn't have a mortgage. To get a remortgage you have to have a mortgage to start with. You could be guarantors on a loan for him but personally, son or not, i wouldn't do it ! You never know whats around the corner.

Poosmate

Surely on £32k pa he'll be picking up arounf £2k per month in salary? How can he not afford to pay off his debts himself?

I service a debt about that size on half his salary and I run a house and car too paying mortgage, bills, petrol, mot, tax, insurance etc.

The best thing you can do is allow him to pay off his own debts - allow him to feel the pain otherwise he'll never learn how to handle his money.

Poo

GMS

He would need to be added to your mortgage which would mean unsecured debts being converted to secured and putting YOUR home at risk for his debts.

If he chose this route then he may have issues arranging a mortgage of his own as he would have one already. No such thing as a percentage of the mortgage, each mortgagor is jointly and severally liable for the debt so the full payment would be taken into account when he went for one of his own.

Could he not consolidtate into one unsecured loan? May be more expensive in the short term but would mean no tie in to a mortgage

John424

Could you not stick the cash on a interest free 20 months credit card, I just got 10k for 2 years with virgin and transferred it promptly to my mortgage!