Advise required on borrowing money.

matphil

Hi.
I am looking for some advise on the best way to borrow some money.
Our main problem is that neither me or my other half are working and are not likely to in the near future.
My oh is disabled and our monthly income is £1000.
We have debts of £10,000. We have £10,000 left to pay on our mortgage for the next 10 years.
We want to borrow £10,000 for adaptions to our home and to buy a caravan to help my oh recouporate. Although neither are essential they would greatly help my oh.
We had a £10,000 loan 5 years ago which is being paid by our insurance, there is 5 years left on this. It is with our mortgage company and secured on our house.
Would it be best to re-mortgage or to take out a loan and would we be able to get either of them.
Thanks.

Rafter

Generally getting unsecured debt greater than your annual income will be very difficult - particularly on such a low income for 2 people.

You should be able to get grants or charity assistance for the adaptions to your home and may find a charity who offer holidays to disabled people in specially adapted caravans.

Your only other alternative seems to be to develop an additional source of income against which a loan can be offered or which would allow you to service a larger mortgage.

Please don't end up borrowing at a high rate of interest from a loan shark or secured lender and end up paying £'000s in interest over many many years for short term benefits.

Good luck.

R.

financial_solution

Is the £10k loan that is being paid by insurance secured? If so any new lender will insist on clearing it out of their loan and thus this will create extra expense for you.

You may only have a small (relatively) fixed income but i believe that this hould not exclude you from borrowing money as long as it is done sensibly with eyes wide open.

Due to your circumstances you may be required to seek independent legal advice to ensure all aspects and repercussions are explained to you.

The bottom line is: its your house, your money and as long as you are not mis advised you should be able to make your own decisions. You are a grown up. Dont be patronised just because you are in difficult circumstances.

I am aware of many lenders who would consider your proposal. Its up to you whether or not you exercise your option to re-finance or not.

How much is your house worth?

Good luck,

mark.

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