Additional Secured & Unsecured loans

moneyhelp2012

My question is I am able to pay off secured or unsecured loans off my mortgage. I have 3 loans ( 2 secured = £16000 and 1 unsecured loan =£8500) added to my mortgage, all with a term of 19 years. I am unable to remortgage as my mortgage borrowing is almost 100%

I overpay on my mortgage but the amount taken off the loans is minimal.

Would I be better taking out a loan to pay one of the loans off and paying it off over the 2 years? This would then give me the equity needed to remortgage.

Thrugelmir

Are all the loans incur the same rate of interest?

moneyhelp2012

they have similar interest rates, one is 3.9%, 4.44% and 4.78% all over 19 years

CLAPTON

moneyhelp2012 wrote: »

My question is I am able to pay off secured or unsecured loans off my mortgage. I have 3 loans ( 2 secured = £16000 and 1 unsecured loan =£8500) added to my mortgage, all with a term of 19 years. I am unable to remortgage as my mortgage borrowing is almost 100%

I overpay on my mortgage but the amount taken off the loans is minimal.

Would I be better taking out a loan to pay one of the loans off and paying it off over the 2 years? This would then give me the equity needed to remortgage.

I'm not sure what you are trying to achieve here.

the amount coming off your mortgage must be at least the amount of overpayment, so if not much is coming off it's because you aren't making a large overpayment

if you can afford to get a new loan and repay in 2 years why not use that 'spare' money to overpay your existing mortgage
make sure (if possible) that the overpayments are going to the loan with the highest APR

its unlikely that you will get another loan with just a low interest rate so the idea doesn't seem a good one

Thrugelmir

moneyhelp2012 wrote: »

they have similar interest rates, one is 3.9%, 4.44% and 4.78% all over 19 years

Overpay the one with the highest rate of interest first i.e. 4.78%. Over time it will make a difference.

moneyhelp2012

Thankyou for your replies. I hadn't realised I could request to pay the overpayment just to one loan as the payment was being spread over the 3 loans. I have now phoned my mortgage provider and changed this.

Thankyou