Remortgage or borrow more?? Advice

natalie656

Hi

I'm looking for some advice. My property is currently worth 135,000 (according to Zoopla) and i have an outstanding mortgage of 88000.

I'm looking to borrow more to pay off some credit cards and other debts, around 10,000.

The problem is i have a shared equity mortgage (70/30) the original mortgage was for £94,500.

I just wondered weather it would be better to remortgage or borrow more on my mortgage?

Current mortgage is with nationwide on the BMR of 2.50%. I've made an appointment with nationwide who advised me my LTV is 80%.

Thanks

kingstreet

Try to stay on that 2.5% BMR if you can.

You won't get a remortgage at 80% at that rate elsewhere.

guruchelles

Somebody who knows much more than me will come along in a minutes, but I believe that the concern with borrowing on property to consolidate debts is that you are essentially making the repayment duration much much longer and may therefore end up paying more in additional interest over a number of years.

You're also then putting yourself further at risk of going into negative equity.

It would be better to see if you can juggle around your debts so that they're on the lowest possible unsecured interest (ie, 0% balance transfers, shifting loans to lower rate ones) and then to pay as much as you can afford concentrating on the higher interest rate ones first.

Good luck in whatever you decide.