arrears mortgage co asks if i would like to add to mortgage

robti

Hi i currently owe just less than £500 arrears to my mortgage i am paying this back at £10 extra per month.

Now mortgage company BoS has asked if i would like to add this to my mortgage and clear up my arrears, i am currently on jsa and things dont look good in my area re employment.

What would you recommend ?

Thanks

DevCoder

Whats your mortgage rate, the outstanding balance and how long has it left to run?

robti

currently on a standard rate (sorry don't know at the moment) balance is around £38,000 on a £60,000 value and it should have around 10 years left to run

Thanks

Harry_Boyle

Are you currently paying interest on your arrears?

You will if you add them to your mortgage.

DevCoder

Lets assume roughly 4% SVR

So 38,000 @ 120 months @ 4% = 15,200 in interest
38,500 @ 120 months @ 4% = 15,400 in interest

if my top of head maths is right, so youll pay £200 extra to consolidate the arrears.