should i add secured loans to mortgage

jace22

hi everyone what an amazing forum this is
would like some help please

here is a breakdown of my circumstances

all are with halifax

mortgage 2yr fixed ends in sept current term 22yrs ballance £26627.22 monthly payment £176.78

loan (a) term left 8yrs balance £8018.28 monthly payment £128.31

loan (b) term left 18 yrs balance £20367.11 monthly payment £167.99

my question is would i be better off adding my loans to the mortgage or just leave them as they are

my thinking is that my total monthly payment for all three is £473.08
and if i was to combine them all to make a mortgage of £55012.61 then i think (not sure corect me if am wrong)
the monthly payment would be £367.69 (came to this using a mortgage calculator)

i would look to keeping the mortgage payment at £473.08 in order to cut the term from 22 to 13yrs

i would be very grateful for your comments ,suggestions and general help

is it common for banks to allow thwe adding of secured loans to mortgages or will i not be able to do this

thanks i advance

jace22

anyone please

pusscat

I am no expert but you sound a bit desperate....so I will see if I can help.....

My guess would be that so long as your mortgage remains less than the value of your property (% depends on the amounts in question I guess) and within your borrowing limits then the BS would allow you to do this.

The reason I suggest this is that if you were to remortgage with another BS for the full £55k (assuming you could get it) then the Halifax would loose all of your business. However, it does rely on your being eligible for a £55k mortgage.

Have you worked those repayments out on the fixed rate that you currently have? Are you confident that you will be able to get another mortgage at that rate?

You don't mention any interest rates (and I don't have time to work them out - sorry!) but I would imagine that your secured loans are at a higher rate of interest than your mortgage? In which case, if they are already secured it would seem to make sense to cut them to the lowest interest rate possible.

I would also imagine it would be impossible/difficult to move to another lender without paying off the secured loans as then the Halifax would have a second and third charge over your property rather than 1st 2nd and 3rd charges.....even if you could, would you be able to get a mortgage of the amount you wanted with that much non mortgage debt?

Your mortgage seems very low, so at a guess, either you are older and have been in the property market for some time (and have built up equity?) or you are in a shared ownership property (if so then it may be a little different.....)

Please don't do anything based on this advice as I am not an expert, but to get really useful advice it would help to know the full situation - such as property value, your salary, interest rates, credit history etc.

herbiesjp

Simply put - yes you can do exactly what you are looking to

The fact they are second charges will not stop lenders agrreeing this for you.

I'm glad you are looking to overpay, to reduce the effect of the additional borrowing, and reduce the interest payable, by in effect reducing the mortgage term

It looks like you have looked into this quite well, all you need to do now is find a lender to agree the re-mortgage for you

jace22

pusscat wrote: »

You don't mention any interest rates


my rate for the mortgage i think is 5.69
and the secured loans are currently at 6.88

Your mortgage seems very low, so at a guess, either you are older and have been in the property market for some time (and have built up equity?) or you are in a shared ownership property (if so then it may be a little different.....)

im not old well i hope not anyway :rotfl: im 25yrs
my propety was a RTB in south wales and as tripled in value since i bought it 3yrs ago

another question is whether i should leave the 8yr loan alone or add it to the mortagae and extend it past the original term