Remortgage with debt consolidation

gindog20

Currently got a £78,500 mortgage with Lloyds with 18 years left.
I am looking to remortgage for £105,000. To pay off debt. I have four credit cards (£12,000 worth), and i am currently paying them off at the minimum payment, and they are intrest free. I also have two loans, one with sainsburys (£8000, £390 a month, just over two years left), and one with Tesco (£4000, £100 a month 4 years left). .
So its about £25000 borrowing on the house to pay these off. I have allready been declined by Santander, and i am waiting to here back from Co Op.
My house is valued at £160,000. We have an income of about £35, 000 per annum.

Does anyone have any good advise about securing a new loan? i am scared that i am just going to get knocked back from every lender, due to the high debt.

magpiecottage

Are you sure it is a good idea?

If you put short term debt onto your mortgage then in the long run it will cost you more - although the monthly payments might be lower, you will be paying interest on the two loans for 17 years instead of 2 and 4 years.

If the credit cards are interest free, then they will cost MUCH more.

And, if you do not keep up repayments, you could lose your home.

Also, all to often, I see borrowers consolidate and then borrow elsewhere so that, in the end, they DO lose their home.

I am no fan of Santander but I would say they have taken a responsible decision.

opinions4u

What are you doing to change the spending patterns that accrued the debt in the first place?

Thrugelmir

You will struggle to find a mainstream lender that will consolidate the debts into a new mortgage. Lenders are now committed to codes of responsible lending. Debt consolidation resolves the problem but not the issues for the problem. The risk to the lender is that consolidation doesn't resolve the problem.

Suggest you pay a visit to the Debt Free Wannabe board. You'll get loads of support and advice on there.