Consolidate existing debts into Mortgage?

big_T_4

I am currently spending a fortune renting in London, so am interested in getting on the property ladder in the next year or so, going in jointly with my girlfriend. Problem is we each have personal debts of about £10k. These are gradually clearing but will take us both a few years yet.

What I was wondering was is there a possibility / is it commonplace to get a mortgage £10-20k more than we need for the property in order to absorb our existing debts? Then if we stay put for a few years then the equity hopefully gained will pay off our personal debts on its own, and in the meantime we have more money in our pockets due to reduced net debt repayment outgoings.

I realise this is a gamble but it could accelerate our getting on of the property ladder.

Thanks in advance

UK007BullDog

There are lenders who would do that. If you have no savings then you are looking at lenders who will lend you more than 100% (mortgage and debt consolidation). However you will pay for the priviledge with very high fees and higher interest rate. To get one of those you need to fit certain criteria, like income, nationality, job security, credit record......

You might want to look if you could manage a mortgage and the loans running alongside.

So pop down to your local broker and get some free advice.

Mr_helpful

you might want to think about how much extra this will cost in paying off the debts over a much longer periods, higher fees and the implications of securing the debt to your property, ie if you cant pay a loan or credit card you get a default but a mortgage can result in repossession. Perhaps consolidate with an unsecured loan.

big_T_4

Thanks guys