Consolidate personal loan into home loan?

cymrulady

Been talking to bank today about consolidating personal loan into one of the two home loans I have with the bank. Was probably misadvised by bank two and a half years ago when I took out the personal loan - the home loans were already in existence and could simply have been extended. Interest on the personal loan is significantly higher.

Today was told that I'd have to make application for in effect another home loan and that would include credit scoring. Due to a long standing dispute with Virgin about PPIs, my household has a CCJ against it and so this would fall flat.

Worth approaching another bank/lender? I feel that I'm being given the run around and even fleeced by HSBC - or would the old credit checks rear their head? Thanks.

jonesMUFCforever

Why do you consider making an unsecured loan (personal) into a secured one (mortgage) a good idea.

If you default on that you could lose your home!

By all means consider applying elsewhere for an amount that will clear your debts but that CCJ could come back to bite you on the bum.

Interest on personal loans have always been higher than mortgage rates - but then personal loans are not available over 25 years or so.

It is impossible for us to advise about the possibility of the bank mis-advising you without a lot more information.

Is it not a case of overspending here? Instead of consolidating (and possibly being in the same boat 12 months down the road) have you set out a comprehensive statement of affairs showing exactly where your money goes every month and then see where savings could be made to reduce your debts.
My advice - pop over to the debt free wanabe board.

Emmzi

misadvised by bank
took PPI when didn't need it

Bit of a lack of personal accountability going on here.

Anyway, adding loans to mortgage makes them more expensive because you repay them over longer AND you usually have lawyers fees to pay if it isn't with your mortgage lender.

Save up and repay early? If you have no disposable income to do that you want the DFW board for advice.

_Andy_

With the adverse absolutely no high street lender is going to touch you

_Andy_

Emmzi wrote: »

Anyway, adding loans to mortgage makes them more expensive because you repay them over longer AND you usually have lawyers fees to pay if it isn't with your mortgage lender.

No, the additional borrowing could be taken over whatever term the OP wants, doesn't have to match the term of the mortgage (although in this case no lender is going to touch them with a bargepole anyway)

_Andy_

Also to add - if there is a CCJ secured on the home, any further secured borrowing would need a deed of postponement from the lender that secured the CCJ, which won't happen

jonesMUFCforever

_Andy_ wrote: »

Also to add - if there is a CCJ secured on the home, any further secured borrowing would need a deed of postponement from the lender that secured the CCJ, which won't happen

I read it as a member of the household is with a CCJ - but again I don't think I read it as secured against the house.
I could be wrong it would not be the first time

_Andy_

Doh my bad, you're right. I take back the DOP stuff then
cheers