borrowing more on my mortgage

ferrero25

Hi, first post on this forum so bear with me

Basically i have a mortgage with HSBC was originally taken out in 2007 105,000 over 30 years with the first 3 years interest only and have now been on a capital repayment for the past 2 years. House was bought for 137,500 and is recently valued at 130,000. We are fixed at 6.1% until 2017 and then move on to a variable rate, we have 102500 to pay off. I want to consolidate my oustanding debts of 12k and have tried to get loans but to no avail. Can anyone give me some advice about using the equity on my house please?

Im looking to borrow 12k to pay off these debts and then the only debt i will have is my mortgage. Any help and advice would be appreciated.

Thanks

Dave_Ham

Hi - unfortunately this is going to be very tricky..

Firstly, to take your primary mortgage away from HSBC will leave you with a big early redemption penalty (I would imagine)

To obtain a second charge/secured loan would depend upon a load of other variables, but to be honest will be pushing it to take you to 90% of the home value.

If you have to restructure (whilst this is only my gut feeling) would be to take a personal loan unsecured..

This will not give you a great monthly saving, but should be a bit. Alternatively, try and move any credit balances to 0% to save a bit..

inmypocketnottheirs

Remember £12k at 5.5% over 25 years will cost you more than the sae amount over 5 years at 20%.

You are better off being frugal, not incurring more debt(I.e. living within your means) and snowballing your debts than remortgaging.