remortgage/new mortgage???

sc4571

We currently own our house outright, thanks to wonderful parents. However we have an outstanding debt of £12500 which is currently split on 0% credit cards which we try to pay off at a total of £1000 a month. We are considering a small mortgage in order to pay of the debt rather than a personal loan due to low apr at moment. Can anyone answer would this be classed as a remortgage or would we qualify for first time mortgage offers?

GMS

It would be a remortgage as you own the property. You need a remortgage of an unencumbered property.

Not all lenders will allow this for debt consolidation and you should consider very carefully before doing this.

Currently your home is not under any threat of repossession as you have no debt secured against it. Whilst transferring the debts to your home may mean savings in the short term you could end up paying a lot more over the term of the mortgage.

Most lenders would want a minimum loan of £25,001 so you would be borrowing more than you need in that situation.

Do plenty of thinking and number crunching before entering into this.