Please, Please Help

JoeK_3

chinagirl wrote: »

Hi, we are in a similar situation, we have mortgage of 86,000 over 22 years on house valued at £140,000. We also have bank loans of £19,000 and credit cards totalling £3,000, obviously unsecured.
We too are thinking about remortgaging to pay off all our debts and just have the mortgage. What we pay out at the moment on loans and credit cards, is a lot more than the remortgage monthly figure will be, so we will be better off each month.
Our worry is if things change in the future, with my or my husbands jobs, ability to pay, but if that happens, we would not be able to pay our existing mortgage or any of the loans/credit card payments either.
We thinking is it better to remortgage now, whilst we have good credit rating ?
We writing to bank to ask for final settlement figure, then will decide what to do. Bit scary, as whatever we do, is gonna cost us, it is just 'damage limitation' when you owe money!
What do you all think, would appreciate your input?

Post your incomes please.

JoeK

herbiesjp

chinagirl wrote: »

Hi, we are in a similar situation, we have mortgage of 86,000 over 22 years on house valued at £140,000. We also have bank loans of £19,000 and credit cards totalling £3,000, obviously unsecured.
We too are thinking about remortgaging to pay off all our debts and just have the mortgage. What we pay out at the moment on loans and credit cards, is a lot more than the remortgage monthly figure will be, so we will be better off each month.
Our worry is if things change in the future, with my or my husbands jobs, ability to pay, but if that happens, we would not be able to pay our existing mortgage or any of the loans/credit card payments either.
We thinking is it better to remortgage now, whilst we have good credit rating ?
We writing to bank to ask for final settlement figure, then will decide what to do. Bit scary, as whatever we do, is gonna cost us, it is just 'damage limitation' when you owe money!
What do you all think, would appreciate your input?

So you would want to go to £108k borrowing against your home - that is not a problem as the property is worth £140k

If you are fully aware of the implications of changing unsecured loans/cards into secured debts against your property then it can be a route for you to look at - you need to be aware that whilst being cheaper in the short term, by paying it back over a longer term, it will be more expensive for you. Making overpayments into the new higher mortgage can to an extent counter that effect by reducing the mortgage term for you - so you would need a mortgage that allows you to do that if you wish.
As long as you have good credit history, and your incomes can support the higher mortgage amount, the you will have plenty of options available

Consolidating like this is normally done as a last resort, to improve your monthly disposable income, for the above reasons, so I would suggest talking to some professionals before you do anything first

HTH

dazzadee

should "chinagirl" and us go for a 2nd mortgage?

JoeK_3

You should both be aware that there are lenders that will allow the mortgage to be put over your existing term, whilst the loan is over a shorter term, whilst they are both at the same low interest rate.

JoeK

dazzadee

hi JoeK

can you give me an example as i dont quite understand?

herbiesjp

dazzadee wrote: »

should "chinagirl" and us go for a 2nd mortgage?

What might be right for chinagirl may not be right for you

Your circumstances are different

JoeK_3

dazzadee wrote: »

hi JoeK

can you give me an example as i dont quite understand?

Example:
£75,00 mortgage @ 6% - 18 year term
£30,000 loan @ 6% - 6 year term

Remortgaged with the same lender.

JoeK